Question: What two problems are associated with actual costing? How does normal costing solve these two problems? At the end of a month, how is over

  1. What two problems are associated with actual costing?
  2. How does normal costing "solve" these two problems?
  3. At the end of a month, how is over or under applied overhead reported on the financial statements?
  4. At the end of the year, how is over or under applied overhead reported on the financial statements?

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