If Manufacturing Overhead has a credit balance at the end of the period then

Question

Quizplus · Accepted Answer

A credit balance in Manufacturing Overhead indicates that the overhead assigned to Work in Process Inventory is more than the overhead incurred, leading to overapplication of overhead. This is because Manufacturing Overhead is a control account that accumulates all overhead costs that have been assigned to Work in Process Inventory, and any variance in the amount assigned vs. the amount incurred will result in either overapplied or underapplied overhead. Therefore, option C is the correct choice.

If Manufacturing Overhead Has a Credit Balance at the End