What does a debit balance in the Manufacturing Overhead account at the end of the period tell management?

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A debit balance in the Manufacturing Overhead account at the end of the period indicates that overhead was under applied, meaning that actual overhead costs incurred were less than estimated overhead costs. This can happen if the company used fewer resources than anticipated or if the actual cost of resources was less than anticipated. It is important for management to be aware of this so that they can adjust their cost estimates and better control their overhead expenses in the future.

What Does a Debit Balance in the Manufacturing Overhead Account