If the amount charged to Manufacturing Overhead Incurred account during a period is less than the manufacturing overhead charged to jobs during the period,overhead was underapplied.

Question

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If the amount charged to Manufacturing Overhead Incurred is less than the overhead charged to jobs, it means that more overhead was applied to jobs than was actually incurred, indicating that overhead was overapplied, not underapplied.

If the Amount Charged to Manufacturing Overhead Incurred Account During