Underapplied Overhead(redirected from Under-Applied Overhead)
In accounting, an estimate of overhead for a work-in-process product that is less than the overhead actually is. This may happen for any number of reasons. Because underapplied overhead means profits are lower than the records say they should be, it is subtracted from the cost of goods sold at the end of the accounting period. See also: Overapplied overhead.
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