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    Managerial Accounting Study Set 23
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    Exam 3: Job-Order Costing: Cost Flows and External Reporting
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    Two of the Reasons Why Manufacturing Overhead May Be Underapplied
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Two of the Reasons Why Manufacturing Overhead May Be Underapplied

Question 181

Question 181

True/False

Two of the reasons why manufacturing overhead may be underapplied are: (1) the estimated total manufacturing overhead cost may have been too high; and (2) the estimated total amount of the allocation base may have been too low.

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