Question

Overapplied manufacturing overhead would result if:

A. the plant was operated at less than normal capacity.
B. manufacturing overhead costs incurred were less than estimated manufacturing overhead costs.
C. manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production.
D. manufacturing overhead costs incurred were greater than manufacturing overhead costs charged to production.

Answer 1

Answer:

C. manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production.

Explanation:

Overhead are applied to the production on a predetermined overhead rate. At the end of the period or project we compare the net impact of applied overheads and actual overhead of a project and determine any under or over application of overheads to adjust the difference.

Over-applied overheads mean the overhead applied to the production using predetermined overhead rate is more than the overheads actually incurred.