applied averhead is more than actual overhead incurred finished goods ledger typically used by companies whose products are indistinguishable from each other underapplied overhead a subsidiary ledger that maintains a separate account for each type of material activity-based costing applied overhead is less than actual overhead incurred job order cost system a system that uses a different overhead rate for each activity materials ledger typically used by companies that make custom procucts overapplied overhead the stock ledger process cost system