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Applied Manufacturing Overhead
Applied Manufacturing Overhead refers to the estimated overhead costs assigned to individual products based on a predetermined rate and actual activity levels.
Overhead
The indirect costs of running a business that are not directly associated with the production of goods or services, such as administrative expenses and rent.
Underapplied
A situation where the allocated or budgeted costs are less than the actual costs incurred, typically in the context of manufacturing overhead.
Overapplied
A situation where the allocated overhead costs exceed the actual overhead costs incurred.
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