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SOLUTION M ANUAL CORPIRATE FINANCE MANAGERIAL ACCOUNT COST ACOUNT MANAGEMENT FINANCIAL MANAGEMENT

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Plantwide overhead rate

A single predetermined overhead rate that is used throughout a plant

Predetermined overhead rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.

Underapplied overhead

A debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount of overhead cost applied to Work in Process during a period

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