ECONOMICS

Detailed explanation-1: -False – overhead is underapplied when actual overhead is greater than applied overhead.

Detailed explanation-2: -Answer: A. The applied manufacturing overhead cost was greater than the actual manufacturing overhead cost. In case the applied manufacturing overhead is higher than the actual amount of manufacturing overhead incurred, the difference will be termed as the overapplied manufacturing overhead.

Detailed explanation-3: -Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs. Actual manufacturing overhead costs are assigned to each job by tracing each overhead cost to a specific job.

Detailed explanation-4: -Over applied Overhead. Overhead that occurs when the applied overhead is greater than the actual overhead. Overhead Variance. Difference between applied overhead and actual overhead.

Detailed explanation-5: -When overhead has been overapplied, the proper accounting is to debit the manufacturing overhead cost pool and credit the cost of goods sold in the amount of the overapplication. Doing so results in the actual amount of overhead incurred being charged through the cost of goods sold.