Overapplied manufacturing overhead exists when overhead assigned to work in process is
A) more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
B) less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
C) more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.
D) less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

Question

Quizplus · Accepted Answer

Overapplied manufacturing overhead occurs when the overhead assigned to work in process exceeds the actual overhead incurred, resulting in a credit balance in the Manufacturing Overhead account at the end of the period.

Overapplied Manufacturing Overhead Exists When Overhead Assigned to Work in Process