Which of the following statements is(are)true regarding the application of manufacturing overhead? (A)Manufacturing overhead is only recorded on the job cost sheets when (a)financial statements are prepared or a job is completed.(B)Overapplied overhead occurs when the actual overhead costs incurred during a period are greater than the overhead costs applied during the period.

Question

Quizplus · Accepted Answer

Manufacturing overhead is allocated to each job as soon as it is incurred, not just when financial statements are prepared or a job is completed. Thus, statement A is false. However, statement B is true as overapplied overhead occurs when actual overhead costs are less than the overhead costs applied during the period.

Which of the Following Statements Is(are)true Regarding the Application of Manufacturing