The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Name: The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the overhead applied is greater than the overhead incurred, it results in overapplied overhead, which is recorded as a credit balance in the Factory Overhead account.

The Factory Overhead Account Will Have a Credit Balance at the End