Under-applied overhead at the end of a month:
A)Results when actual overhead costs are less than amounts applied to work in process.
B)Indicates a poorly designed cost accounting system.
C)Is represented by a debit balance remaining in the Manufacturing Overhead account.
D)Is represented by a credit balance remaining in the Work in Process Inventory account.

Question

Quizplus · Accepted Answer

Under-applied overhead occurs when the actual overhead costs exceed the overhead costs applied to work in process, resulting in a debit balance in the Manufacturing Overhead account.

Under-Applied Overhead at the End of a Month