Sting Corporation debited Cost of Goods Sold and credited Manufacturing Overhead at year-end. On the basis of this information, one can conclude that:

Question

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When Cost of Goods Sold is debited and Manufacturing Overhead is credited, it means that the actual overhead incurred was less than the applied overhead. This results in overapplied overhead, which is closed out to Cost of Goods Sold at year-end. Therefore, actual overhead exceeded applied overhead.

Sting Corporation Debited Cost of Goods Sold and Credited Manufacturing