Refer to the T-account below: The ending balance of $8,000 represents which of the following?
A) Underapplied overhead.
B) Manufacturing overhead that will be carried over to the next period.
C) Overapplied overhead.
D) A bookkeeping error.

Question

Refer to the T-account below:  The ending balance of $8,000 represents which of the following?
A) Underapplied overhead. 
B) Manufacturing overhead that will be carried over to the next period. 
C) Overapplied overhead. 
D) A bookkeeping error.

Quizplus · Accepted Answer

The T-account shows that the actual overhead incurred was $12,000, while the applied overhead was $20,000. This means that overhead was overapplied by $8,000, resulting in a credit balance of $8,000 at the end of the period.

Refer to the T-Account Below: the Ending Balance of $8,000