Asked by Allie Spolsdoff on Jul 12, 2024
Verified
Overapplied manufacturing overhead would result if:
A) the plant was operated at less than normal capacity.
B) manufacturing overhead costs incurred were less than estimated manufacturing overhead costs.
C) manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production.
D) manufacturing overhead costs incurred were greater than manufacturing overhead costs charged to production.
Overapplied Manufacturing Overhead
A situation where the allocated amount for manufacturing overhead costs exceeds the actual amount incurred.
Manufacturing Costs
Expenses incurred in the process of producing goods, including direct materials, direct labor, and both fixed and variable manufacturing overhead.
- Gain an understanding of the implications of overapplied and underapplied manufacturing overhead in cost accounting.
Verified Answer
SS
Svitlana SoltysJul 15, 2024
Final Answer :
C
Explanation :
Overapplied manufacturing overhead occurs when the manufacturing overhead costs incurred are less than manufacturing overhead costs charged to production. This means that too much overhead was allocated to the products produced, resulting in an overapplication of overhead.
Learning Objectives
- Gain an understanding of the implications of overapplied and underapplied manufacturing overhead in cost accounting.
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