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What are the possible explanations for this

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Would Some explain to me what manufacturing overhead is and why there would be a credit balance? what would a company normally do when this happens? Any help would be greatly appreciated.

"A company applies manufacturing overhead on the basis of machine-hours, using a predetermined overhead rate. At the end of the current year, the Manufacturing Overhead account has a credit balance. What are the possible explanations for this? What disposition should be made of this balance?"

Reference no: EM132322204

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