MANAG.ACCOUNTING-CONNECT ACCESS >CUSTOM<
MANAG.ACCOUNTING-CONNECT ACCESS >CUSTOM<
17th Edition
ISBN: 9781266862434
Author: Garrison
Publisher: MCG CUSTOM
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Chapter 3, Problem 1AE
To determine

Under applied and over applied:

Company would estimate the manufacturing overhead cost to allot the estimate amount to the manufacturing department.

If actual manufacturing overhead cost is exceeded the estimated applied cost is called as under applied.

At the same time, actual manufacturing overhead cost is lower than the estimated applied cost is called as over applied.

Whether manufacturing overhead cost is over applied or under applied.

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