Over-applied overhead means that actual manufacturing overhead costs were less than the manufacturing overhead costs allocated to jobs.

Name: Over-applied overhead means that actual manufacturing overhead costs were less than the manufacturing overhead costs allocated to jobs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Over-applied overhead occurs when the overhead allocated to jobs exceeds the actual overhead incurred, indicating that the estimated overhead rate was higher than necessary.

Over-Applied Overhead Means That Actual Manufacturing Overhead Costs Were Less