ASSIGNMENT 2
Overhead application to costs is a critical issue for the costing of your products. We are studying several ways to handle this situation.
- Describe overhead and the overhead application process.
- What would cause an overhead to be overapplied, or underapplied.
- Discuss the results to your decision making and the financial statements for each of those two situations.
- Describe how the over or under application of overhead should be corrected in the accounting records.
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