“If the manufacturing overhead account has a debit balance, be able to explain the relationship between applied and actual manufacturing overhead (which amount is larger). Be able to identify whether manufacturing over is under-applied or over-applied.”

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“If the manufacturing overhead account has a debit balance, be able to explain the relationship between applied and actual manufacturing overhead (which amount is larger). Be able to identify whether manufacturing over is under-applied or over-applied.”

Debit = Under-applied = Actual