If the debit side of the Manufacturing Overhead account totals more than the credit side of the account,the manufacturing overhead is overallocated.

Question

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If the debit side of the Manufacturing Overhead account totals more than the credit side, the manufacturing overhead is underallocated, not overallocated. This means actual overhead costs were higher than the overhead costs allocated to products.

If the Debit Side of the Manufacturing Overhead Account Totals