If overhead applied is less than actual overhead,it is:
A) Fully applied.
B) Underapplied.
C) Overapplied.
D) Expected.
E) Normal.

Question

Quizplus · Accepted Answer

When overhead applied is less than actual overhead, it means that there is an underapplication of overhead. This occurs when the predetermined overhead rate used to apply overhead to production is too low or when actual overhead costs are higher than estimated.

If Overhead Applied Is Less Than Actual Overhead,it Is