A debit balance in the manufacturing overhead account at the end of the period indicates that:
A)manufacturing overhead is overapplied.
B)manufacturing overhead is underapplied.
C)manufacturing overhead has been accurately applied.
D)None of the answers are correct.

Question

Quizplus · Accepted Answer

A debit balance in the manufacturing overhead account indicates that the actual overhead costs were greater than the applied overhead costs, meaning overhead is underapplied.

A Debit Balance in the Manufacturing Overhead Account at the End