A debit balance in the manufacturing overhead account at the end of the period indicates that:
A) manufacturing overhead is overapplied.
B) manufacturing overhead is underapplied.
C) manufacturing overhead has been accurately applied.
D) None of these.

Question

Quizplus · Accepted Answer

A debit balance in the manufacturing overhead account indicates that the actual overhead costs incurred were greater than the overhead costs applied to production, meaning overhead is underapplied.

A Debit Balance in the Manufacturing Overhead Account at the End