If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period overhead is said to be
A) underapplied.
B) overapplied.
C) in error.
D) prepaid.

Question

Quizplus · Accepted Answer

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, then manufacturing overhead is said to be overapplied. This means that the amount of overhead applied to jobs was more than what was actually spent, resulting in a credit balance in the manufacturing overhead account.

If the Manufacturing Overhead Costs Applied to Jobs Worked on Were