Asked by Patrick Garland on Jun 09, 2024

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If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be overapplied.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities and salaries for management.

Overapplied

This term relates to situations where the allocated or applied costs in cost accounting exceed the actual costs incurred.

  • Understand the concept of overapplied and underapplied manufacturing overhead and its impact on cost accounting.
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IS
Israa SalemJun 12, 2024
Final Answer :
False
Explanation :
If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be underapplied, not overapplied.