1. If a company applies overhead to jobs on the basis of a predetermined overhea

Question

1. If a company applies overhead to jobs on the basis of a predetermined overhead rate, which of the following is true if the manufacturing overhead account at the end of any period has a debit balance? a) More overhead cost has been charged to jobs than has been incurred during the period. b) More overhead cost has been incurred during the period than has been charged to jobs. c) The amount of overhead cost charged to jobs is greater than the estimated cost for the period d) The amount of overhead cost charged to jobs is less than the estimated overhead cost for the period.

Explanation / Answer

More overhead cost has been incurred during the period than has been charged to jobs. Option B is correct

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