If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then

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If manufacturing overhead has been overallocated, it means that the amount of manufacturing overhead applied to production during the period exceeds the actual manufacturing overhead incurred. If most of the jobs produced have been sold, it means that the cost of goods sold has been recorded for these jobs. Since the manufacturing overhead has been overallocated, it implies that the cost of goods sold has been overstated, as the actual manufacturing overhead incurred was less than the amount applied to production. Therefore, to correct this, the cost of goods sold should be decreased by reducing the amount of manufacturing overhead applied to production.

If Manufacturing Overhead Has Been Overallocated During the Period, and Most