Underapplied manufacturing overhead results in a debit balance in the Manufacturing Overhead account.

Name: Underapplied manufacturing overhead results in a debit balance in the Manufacturing Overhead account.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

Underapplied manufacturing overhead means that actual overhead costs exceeded the amount of overhead costs applied to production. This results in a debit balance in the Manufacturing Overhead account, as the account was not fully credited with the applied overhead costs.

Underapplied Manufacturing Overhead Results in a Debit Balance in the Manufacturing