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.

Question

Dilyon Aqrawi · Accepted Answer

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.

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.

Definitions

Learning Objectives

Learning Objectives

Related questions