What can explain under applied overhead?

For overhead to be underapplied, either the actual fixed costs must be greater than the budgeted fixed costs or the actual volume must be less than the budgeted volume. Applied Overhead = (bud. FOH/bud. volume) X (actual volume).

Job Costing and Overhead Allocation Flashcards by Carl Morgan

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Job Costing and Overhead Allocation Flashcards

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