Under-Applied Overhead at the End of a Month

question 98

Multiple Choice

Under-applied overhead at the end of a month:

• A)Results when actual overhead costs are less than amounts applied to work in process.
• B)Indicates a poorly designed cost accounting system.
• C)Is represented by a debit balance remaining in the Manufacturing Overhead account.
• D)Is represented by a credit balance remaining in the Work in Process Inventory account.