Which of the following situations always results in underapplied overhead?
A) actual overhead is greater than applied overhead
B) actual overhead is less than applied overhead
C) estimated overhead is greater than actual overhead
D) estimated overhead is less than actual overhead

Question

Quizplus · Accepted Answer

Underapplied overhead occurs when the actual overhead costs incurred are greater than the overhead costs applied to products, which is described in option A.

Which of the Following Situations Always Results in Underapplied Overhead