If Manufacturing Overhead has a positive balance at the end of the period then
A)overhead has been underapplied.
B)the overhead assigned to Work in Process Inventory is more than the overhead incurred.
C)overhead has been overapplied.
D)management must take corrective action.

Question

Quizplus · Accepted Answer

A positive balance in Manufacturing Overhead indicates that the actual overhead costs incurred were greater than the overhead costs applied to Work in Process, meaning overhead has been underapplied.

If Manufacturing Overhead Has a Positive Balance at the End