3. When the predetermined overhead rate is based on capacity, the under-
applied overhead is interpreted as the cost of idle capacity. Indeed, pro-
ponents of this method suggest that the underapplied overhead should
be treated as a period expense that would be separately disclosed on
the income statement as Cost of Unused Capacity.
Bạn đang xem 3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH03 SYSSTEMS DESIGN JOB ORDER COSTING