A company assigned overhead to work in process. At year end what does the amount of overapplied overhead mean?
A) The overhead assigned to work in process is greater than the estimated overhead costs.
B) The overhead assigned to work in process is less than the estimated overhead costs.
C) The overhead assigned to work in process is less than the actual overhead.
D) The overhead assigned to work in process is greater than the overhead incurred.

Question

Quizplus · Accepted Answer

Overapplied overhead means that the overhead assigned to work in process is greater than the actual overhead incurred during the period.

A Company Assigned Overhead to Work in Process