True or False The amount of under or overapplied factory overhead would generally be greater at...

True or False The amount of under or overapplied factory overhead would generally be greater at the end of the year than at interim periods during the year.

Expert Solution

This is TRUE that the amount of under or overapplied factory overhead would generally be greater at the end of the year than at interim periods during the year.

As you’ve learned, the actual overhead incurred during the year is rarely equal to the amount that was applied to the individual jobs. Thus, at year-end, the manufacturing overhead account often has a balance, indicating overhead was either overapplied or underapplied.

If, at the end of the term, there is a debit balance in manufacturing overhead, the overhead is considered underapplied overhead. A debit balance in manufacturing overhead shows either that not enough overhead was applied to the individual jobs or overhead was underapplied. If, at the end of the term, there is a credit balance in manufacturing overhead, more overhead was applied to jobs than was actually incurred. This shows the actual amount was overapplied overhead.

ekkarill92 answered 2 years ago

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