If a company applies overhead to jobs on the basis of a predetermined overhead rate

If a company applies overhead to jobs on the basis of a predetermined overhead rate

12.       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:

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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.

E)  none of the above.

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