Unformatted text preview: Applied overhead? Overhead assigned to individual jobs At the end of the year you would like to have no unapplied overhead. Driver- causes of overhead Problems- many costs are not incurred uniformly throughout the year, uneven production levels, fluctuating unit overhead costs Unit costs- important to valuing inventory, determining income, making important decisions. Applying overhead- calculate predetermined overhead rate, apply overhead, reconcile the difference between actual incurred and total applied to production Predetermined overhead rate= estimated annual overhead/ estimated annual activity level....
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- Spring '11
- Managerial Accounting, overhead costs Unit