Overapplied manufacturing overhead means that:
A)the applied manufacturing overhead cost was less than the actual manufacturing overhead cost.
B)the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost.
C)the estimated manufacturing overhead cost was less than the actual manufacturing overhead cost.
D)the estimated manufacturing overhead cost was less than the applied manufacturing overhead cost.

Question

Quizplus · Accepted Answer

Overapplied manufacturing overhead occurs when the actual overhead cost is less than the applied overhead cost. This means that too much overhead was allocated to the products, leading to a higher cost of goods sold and lower net income.

Overapplied Manufacturing Overhead Means That