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If manufacturing overhead is underapplied, then:

tawhid111

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If manufacturing overhead is underapplied, then:

▸ actual manufacturing overhead cost is less than estimated manufacturing overhead cost.

▸ the amount of manufacturing overhead cost applied to Work in Process is less than the actual manufacturing overhead cost incurred.

▸ the predetermined overhead rate is too high.

▸ the Manufacturing Overhead account will have a credit balance at the end of the year.

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Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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