Overapplied manufacturing overhead would result if:
A) the plant was operated at less than normal capacity.
B) manufacturing overhead costs incurred were less than estimated manufacturing overhead costs.
C) manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production.
D) manufacturing overhead costs incurred were greater than manufacturing overhead costs charged to production.

Question

Quizplus · Accepted Answer

Overapplied manufacturing overhead occurs when the manufacturing overhead costs incurred are less than manufacturing overhead costs charged to production. This means that too much overhead was allocated to the products produced, resulting in an overapplication of overhead.

Overapplied Manufacturing Overhead Would Result If