Describe how the over or under application of overhead should be corrected

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kemet201201 kemet201201

21-07-2022
Business

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Describe how the over or under application of overhead should be corrected

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ayfat23 ayfat23 · Answer 1 · 2022-07-21T18:06:51+02:00

Over or under application of overhead should be corrected by closing it to Retained Earnings the Cost of goods sold as well Finished goods Work in process.

What is Retained earnings?

Retained earnings serves as the cumulative net earnings of a company after the accounting for dividends.

This can be used to correct the Over or under application of overhead.

Learn more about Retained earnings at

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