If the Manufacturing Overhead account has a credit balance after overhead has been applied to products,manufacturing overhead:

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If the Manufacturing Overhead account has a credit balance after overhead has been applied to products, it means that the actual manufacturing overhead incurred is less than the applied overhead, resulting in overapplied overhead. This can happen if the estimates made at the beginning of the period for the overhead costs are too high, or if the actual costs were lower than expected. The excess credit balance should be closed out at the end of the period.

If the Manufacturing Overhead Account Has a Credit Balance After