The excess of actual overhead over the overhead applied to products is called _____.
A)overapplied overhead
B)underapplied overhead
C)overestimated overhead
D)prorated overhead

Question

Quizplus · Accepted Answer

When the actual overhead is higher than the overhead applied, it results in underapplied overhead. This happens when the estimated overhead rate is lower than the actual overhead incurred.

The Excess of Actual Overhead Over the Overhead Applied to Products