If at the end of the year Manufacturing Overhead has been overapplied it means that
A) actual overhead costs were greater than the overhead assigned to jobs.
B) actual overhead costs were less than the overhead assigned to jobs.
C) overhead has not been applied to jobs still in process.
D) cost of goods will have to be increased by the amount of the overapplied overhead.

Question

Quizplus · Accepted Answer

Overapplied overhead means that less actual overhead costs were incurred than what was allocated or applied to jobs. This leads to an increase in net income because the cost of goods sold will be less than what was initially recorded.

If at the End of the Year Manufacturing Overhead Has