If Manufacturing Overhead has a negative balance at the end of the period then
A)overhead has been underapplied.
B)the overhead assigned to Work in Process Inventory is less than the overhead incurred.
C)overhead has been overapplied.
D)management must take corrective action.

Question

Quizplus · Accepted Answer

A negative balance in Manufacturing Overhead indicates that more overhead was applied to Work in Process than was actually incurred, meaning overhead has been overapplied.

If Manufacturing Overhead Has a Negative Balance at the End