underapplied overhead

Dictionary of Accounting Terms for: underapplied overhead
underapplied overhead

amount by which the factory overhead added to work-in-process inventory at a predetermined overhead rate (and credited to factory overhead applied) is less than the actual overhead shown in factory overhead control.

Dictionary of Business Terms for: underapplied overhead
underapplied overhead

in cost accounting, situation where an insufficient amount of factory overhead was charged to the products manufactured.

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