Underapplied manufacturing overhead exists when:
A)there is a debit balance in the manufacturing overhead account at the end of the period
B)actual manufacturing overhead is less than applied manufacturing overhead
C)the products manufactured during a period are undercosted
D)applied overhead is larger that direct labor

Question

Quizplus · Accepted Answer

Underapplied manufacturing overhead occurs when the actual overhead costs are greater than the overhead costs applied to products, resulting in a debit balance in the manufacturing overhead account.

Underapplied Manufacturing Overhead Exists When