Question: What is meant by (a) under-applied and (b) over-applied overhead? Why does under applied or over-applied overhead exist at year-end? How are under-applied and over

What is meant by (a) under-applied and (b) over-applied overhead? Why does under applied or over-applied overhead exist at year-end? How are under-applied and over applied overhead treated in the ﬁnancial statements at year-end?

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