If the overhead control account has a debit balance at the end of the period,
A) overhead is overapplied and the difference should be credited to the proper accounts.
B) overhead is overapplied and the difference should be debited to the proper accounts.
C) overhead is underapplied and the difference should be debited to the proper accounts.
D) overhead is underapplied and the difference should be credited to the proper accounts.

Question

Quizplus · Accepted Answer

If the overhead control account has a debit balance, it means that overhead was underapplied during the period. Therefore, the difference should be debited to the proper accounts to adjust for the underapplied amount.

If the Overhead Control Account Has a Debit Balance at the End