If more overhead was applied than had been incurred,the balance in the Manufacturing Overhead account represents the amount of overapplied overhead.

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When more overhead is applied than has been incurred, it creates an overapplied overhead amount. This amount is determined by subtracting the actual overhead incurred from the applied overhead. The resulting balance in the Manufacturing Overhead account represents this overapplied amount.

If More Overhead Was Applied Than Had Been Incurred,the Balance