At the end of a fiscal year,overapplied factory overhead should be:

Name: At the end of a fiscal year,overapplied factory overhead should be:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Overapplied factory overhead means that the actual factory overhead costs were less than the applied overhead costs. This indicates that too much overhead was allocated to products. Since this is a cost that was applied to products, it should be credited to Cost of Goods Sold, which reduces the cost of goods sold and increases the net income.

At the End of a Fiscal Year,overapplied Factory Overhead Should