Overapplied Overhead Means That Not Enough Overhead Cost Was Charged

question 22

True/False

Overapplied overhead means that not enough overhead cost was charged to products during the production process.

---

Definitions:

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Price

The amount of money required to purchase a good, service, or asset, determined by supply and demand dynamics.

Natural Monopoly

A market condition where a single firm can provide goods or services to an entire market at a lower cost than if there were multiple firms in the industry.