Question

Question 3 If overhead was over-applied: Not yet answered Marked out of 100 Flag question Select one: O a, actual overhead costs exceed budgeted overhead O b. none of the options O c. applied overhead exceeds actual overhead costs O d. actual overhead costs exceed applied overhead O e. budgeted overhead exceeds actual overhead costs If overhead was under-applied: Question 4 Not yet answered Marked out of 100 Flag question Select one: O a, actual overhead costs exceed budgeted overhead O b. budgeted overhead exceeds actual overhead costs O c. none of the options O d. actual overhead costs exceed applied overhead O e. applied overhead exceeds actual overhead costs

Answer 1

Introduction:

The over or under-applied overhead is defined as the difference between overhead cost applied and overhead cost actually incurred during a period.

If the overhead cost applied is more than the overhead cost actually incurred during a period, the difference is known as over-applied overhead. On the other hand; if the overhead cost applied is less than the overhead cost actually incurred during a period, the difference is known as under-applied overhead.

Answer to Question 3:

C. Applied overheads exceeds Actual Overhead costs.

Answer to Question 4.

D. Actual overhead costs exceed applied overhead.