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Adjusted Allocation Rate Approach

This video discusses the adjusted allocation-rate approach in Managerial Accounting. The adjusted allocation-rate approach is one way of dealing with an overapplied or underapplied manufacturing overhead balance. Manufacturing overhead is overapplied or underapplied when the predetermined overhead rate differs from the actual overhead. A company using the Adjusted Allocation-Rate Approach would, at the end of a period, determine the actual manufacturing overhead rate and then re-cost each of the jobs that occurred during the period using the actual manufacturing overhead rate. This gets rid of any overapplied or underapplied manufacturing overhead and provides more accurate job-order costing. — Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS & OTHER FREE GUIDES http://eepurl.com/dIaa5z — MICHAEL’S STORY https://www.edspira.com/about/ — LISTEN TO THE SCHEME PODCAST Apple Podcasts: https://podcasts.apple.com/us/podcast... Spotify: https://open.spotify.com/show/4WaNTqV... Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA Website: https://www.edspira.com Instagram:   / edspiradotcom   LinkedIn:   / edspira   Facebook:   / edspira   Reddit:   / edspira   *TikTok:   / edspira   — CONNECT WITH MICHAEL LinkedIn:   / prof-michael-mclaughlin   Twitter:   / prof_mclaughlin   Instagram:   / prof_mclaughlin   Snapchat:   / prof_mclaughlin   *TikTok:   / prof_mclaughlin   — HIRE MCLAUGHLIN CPA Website: http://www.MichaelMcLaughlin.com/hire-me