The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:
A) Balanced overhead.
B) Predetermined overhead.
C) Actual overhead.
D) Underapplied overhead.
E) Overapplied overhead.

Question

Quizplus · Accepted Answer

When the overhead incurred during a period is greater than the overhead applied to jobs, the result is underapplied overhead. This means that the actual overhead cost exceeds the overhead cost that was estimated and applied to jobs.

The Amount by Which Overhead Incurred During a Period Exceeds