22.2k views
3 votes
If overhead applied is less than actual overhead incurred, it is:
Fully applied

User Valknut
by
4.0k points

1 Answer

2 votes

Answer:

under applied overhead

Step-by-step explanation:

In the case when the applied overhead i.e. computed by mutiplying the actual direct labor or actual machine hours with the predetermined overhead rate is lower than the actual overhead so this represent the under applied overhead

Hence, the given situation represent the under applied overhead

User Nikita Barishok
by
4.4k points