The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:
A) Predetermined overhead.
B) Overapplied overhead.
C) Adjusted overhead.
D) Underapplied overhead.
E) Estimated overhead.

Question

Quizplus · Accepted Answer

Overapplied overhead is the difference between the overhead applied to jobs and the actual overhead incurred during a period. This can occur when the overhead applied rate used to allocate overhead to jobs is higher than the actual overhead incurred.

The Amount by Which the Overhead Applied to Jobs During