If the overhead costs applied to a product are less than the actual overhead costs incurred,overhead is:
A)overapplied.
B)underapplied.
C)avoidable.
D)unavoidable.

Question

Quizplus · Accepted Answer

If the overhead costs applied to a product are less than the actual overhead costs incurred, it means that the company has not allocated enough overhead to the product. This results in underapplied overhead costs.

If the Overhead Costs Applied to a Product Are Less