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Under-recovery of overheads occurs when: 1. Actual overheads have fallen in relation to what they were expected to be 2. The overhead charged to production
Under-recovery of overheads occurs when:
1. | Actual overheads have fallen in relation to what they were expected to be | |
2. | The overhead charged to production is lower than the actual overhead incurred | |
3. | The basis of allocating overheads has changed during the period. | |
4. | The actual overhead incurred is less than the overhead that has been charged to production |
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