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

Question

Quizplus · Accepted Answer

Overapplied overhead means that the overhead applied to work in process is greater than the actual overhead incurred.

A Company Assigned Overhead to Work in Process