At the end of the year, under-or over-applied overhead is closed to Income Summary. Is this correct?

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“At the end of the year, under-or over-applied overhead is closed to Income Summary.” Is this correct? If not, indicate the customary treatment of this amount.

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Oct 28, 2011 06:05 AM

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At the end of the year, under-or over-applied overhead is closed to Income Summary. Is this correct?

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Accounting Principles

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