Overapplied overhead occurs when the amount of overhead allocated to production is greater than the actual overhead incurred during the period. This means products may have been costed slightly higher than actual overhead usage. At period end, the difference usually needs to be adjusted in cost accounts or profit and loss depending on materiality and policy.
Owner’s Equity
Owner’s equity is the residual interest of the owner or shareholders in the business after deducting liabilities from assets. It includes capital introduced, retained...
Overhead
Overhead refers to indirect costs that support business operations but cannot be directly traced to a specific product or service. Examples include factory rent,...
Outstanding Shares
Outstanding shares are the shares of a company that have been issued and are currently held by shareholders, excluding treasury shares held by the...
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