Asked by Abylay Tastanbekov on Apr 27, 2024
Verified
If overhead is overapplied,it means that individual jobs have been charged too much overhead during the year and the cost of goods sold reported is too high.
Overapplied Overhead
A situation where the overhead allocated to products or services exceeds the actual overhead costs incurred.
- Comprehend the principles of overhead application within costing, encompassing the handling of both overapplied and underapplied overhead.
Verified Answer
DA
Dilyon AqrawiApr 30, 2024
Final Answer :
True
Explanation :
When overhead is overapplied, it means that more overhead has been allocated or applied to products or jobs than was actually incurred during the period. This results in higher reported costs and ultimately a higher cost of goods sold, which is why the given statement is true.
Learning Objectives
- Comprehend the principles of overhead application within costing, encompassing the handling of both overapplied and underapplied overhead.
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