Ch.15, section 5- under-or overlapped manufacturing overhead
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Based on an estimate of total annual overhead costs.
How is overhead applied?
Overapplied overhead
Means that the overhead assigned to work in process is greater than the overhead incurred.
Underapplied overhead
Means that the overhead assigned to work in process is less than the overhead incurred.
Overapplied
When manufacturing overhead has a credit balance, overhead is said to be: A) overapplied B) underapplied
Underapplied
When manufacturing overhead has a debit balance, overhead is said to be: A) overapplied B) underapplied
It will likely have a remaining balance.
At the end of the year, after overhead has been applied to specific jobs, what will happen to the manufacturing overhead account?