Disposition of Underapplied or Overapplied Overhead Balances: Learning objective of the article: How is over and under applied overhead is disposed off. Give an example to explain the procedure? What disposition should be made of an underapplied overhead or overapplied overhead balance remaining in
Allocated Between Accounts
Allocation is the process of keeping costs in one account and shifting them to other accounts, bases on some related amount of activity.