Chapter 3, Problem 11Q

To determine

Over-applied manufacturing overhead: If the manufacturing overhead cost in the work process is more than the actual manufacturing overhead cost incurred, it is called over-applied manufacturing overhead.

Applied overhead > Actual overhead

Under- applied manufacturing overhead: If the manufacturing overhead cost in the work process is less than the actual manufacturing overhead cost incurred, it is called under-applied manufacturing overhead

Applied overhead < Actual overhead

The adjustment made for under-applied overheads and over-applied overheads on the schedule of cost of goods sold.