Asked by DM KHAN BHUTTO on Jun 17, 2024
Verified
If Manufacturing Overhead has a credit balance at the end of the period then
A) overhead has been underapplied.
B) the overhead assigned to Work in Process Inventory is less than the overhead incurred.
C) overhead has been overapplied.
D) management must take corrective action.
Overapplied Overhead
A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.
Credit Balance
A situation where the sum of credits in an account exceeds the sum of debits, often indicating a liability or revenue.
Work in Process Inventory
Work in process inventory consists of materials, labor, and overhead costs for products that are in the production process but have not yet been completed.
- Capture the essential aspects of applied, actual, overapplied, and underapplied manufacturing overhead.
Verified Answer
Learning Objectives
- Capture the essential aspects of applied, actual, overapplied, and underapplied manufacturing overhead.
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