Underapplied Overhead Occurs When the Balance in the Manufacturing Overhead

question 57

Multiple Choice

Underapplied overhead occurs when the balance in the Manufacturing Overhead Control account is:

• A) greater than the balance in the Applied Manufacturing Overhead account.
• B) equal to the balance in the Applied Manufacturing Overhead account.
• C) less than the balance in the Applied Manufacturing Overhead account.
• D) less than the balance in the Finished Goods Inventory account.

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