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 ending balance of $8,000 in the T-account represents overapplied overhead, which occurs when actual overhead costs are less than the allocated or applied overhead costs. This means that the company allocated more overhead expenses than the actual amount incurred during the period, resulting in overapplied overhead.

Refer to the T-Account Below