if a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit balance in the…
if a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit balance in the manufacturing overhead account at the end of any period means that\nmore overhead cost has been incurred during the period than has been charged to jobs.\nthe amount of overhead cost charged to jobs is greater than the estimated cost for the period.\nthe amount of overhead cost charged to jobs is less than the estimated overhead cost for the period.\nmore overhead cost has been charged to jobs than has been incurred during the period.
Answer
Brief Explanations:
When a company uses a predetermined overhead rate, manufacturing overhead is debited for actual overhead costs incurred and credited for overhead applied to jobs. A credit balance means the amount credited (overhead applied to jobs) is greater than the amount debited (actual overhead costs incurred).
Answer:
more overhead cost has been charged to jobs than has been incurred during the period.