Underapplied factory overhead represents An unfavorable total factory overhead cost variance.
What is an Underapplied Factory Overhead?
An underapplied factory overhead is a term that refers to a situation that comes up when overhead expense results in what a factory or company did not budget for in the long run.
Underapplied factory overhead leads to unnecessary cost implications for the company. It is an unforeseen budget that eventually comes up in the long run.
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