When Applied Overhead Exceeds Actual Overhead Cost

question 7

Multiple Choice

When applied overhead exceeds actual overhead cost,

• A)over-applied(absorbed) overhead is added to cost of goods sold.
• B)overapplied overhead is deducted from cost of goods sold.
• C)underapplied overhead is added to cost of goods sold.
• D)underapplied overhead is deducted from cost of goods sold.