Overapplied overhead will result if
A)the plant is operated at less than expected capacity.
B)overhead costs incurred were greater than estimated overhead costs.
C)overhead costs incurred were less than overhead costs charged to production.
D)overhead costs incurred were greater than overhead charged to production.

Question

Quizplus · Accepted Answer

Overapplied overhead occurs when the overhead costs incurred are less than the overhead costs charged to production. This can occur when the actual overhead costs are less than the estimated overhead costs, or when actual production is less than the planned production.

Overapplied Overhead Will Result If