MC 25 What is overapplied overhead?
A. The difference between actual overhead and applied overhead, when actual overhead is greater than applied overhead.
B. The difference between actual overhead and applied overhead, when applied overhead is greater than actual overhead.
C. The amount of overhead that is allocated to a specific product.
D. The amount of overhead that is not allocated to any specific product.
Answer:A
MC 25 What is overapplied overhead?
A. The difference between actual overhead and applied overhead, when actual overhead is greater than applied overhead. B. The difference between actual overhead and applied overhead, when applied overhead is greater than actual overhead. C. The amount of overhead that is allocated to a specific product. D. The amount of overhead that is not allocated to any specific product.
Explanation: Overapplied overhead occurs when the amount of overhead allocated to a specific product based on the predetermined overhead rate is greater than the actual overhead costs incurred.