Asked by Patrick Garland on Jun 09, 2024
Verified
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.
Verified Answer
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.
Learning Objectives
- Understand the concept of overapplied and underapplied manufacturing overhead and its impact on cost accounting.
Related questions
Overapplied Manufacturing Overhead Would Result If ...
If Manufacturing Overhead Is Underapplied, Then ...
The Following Accounts Are from Last Year's Books at Sharp ...
The Following Accounts Are from Last Year's Books at Sharp ...
If a Manufacturer Underestimated the Manufacturing Overhead Budget and Overestimates ...