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hello and welcome to this session this is professor forhat in which we will discuss over-applied and under-applied overhead now itamp;#39;s very important to see the big picture and what is the big picture the big picture is this we have basically three ma three cost three types of cost material labor and under material weamp;#39;re going to have direct and indirect letamp;#39;s say we have direct material direct labor and anything thatamp;#39;s that thatamp;#39;s not direct material and direct labor is manufacturing overhead so this is the account that weamp;#39;re going to be dealing with so the manufacturing overhead account for everything thatamp;#39;s not direct material and not direct labor in a manufacturing environment simply put letamp;#39;s take a look at it iamp;#39;m just going to call this account overhead now the overhead account itamp;#39;s going to have a debit side and a credit side on the debit side we are going to keep track of the actual overhead what actu
