If the Manufacturing Overhead account has a debit balance at the end of a period it means that
A) actual overhead costs were less than overhead costs applied to jobs.
B) actual overhead costs were greater than overhead costs applied to jobs.
C) actual overhead costs were equal to overhead costs applied to jobs.
D) no jobs have been completed.

Question

Quizplus · Accepted Answer

A debit balance in the Manufacturing Overhead account means that actual overhead costs were greater than overhead costs applied to jobs. This could be due to various reasons such as an increase in the cost of raw materials or an increase in indirect labor costs. It indicates that there is an overapplication of overhead costs and adjustments may need to be made in future periods.

If the Manufacturing Overhead Account Has a Debit Balance at the End