If Manufacturing Overhead has a credit balance at the end of the period then

A) overhead has been underapplied.
B) the overhead assigned to Work in Process Inventory is less than the overhead incurred.
C) overhead has been overapplied.
D) management must take corrective action.

A credit balance in Manufacturing Overhead indicates that the overhead assigned to Work in Process Inventory is more than the overhead incurred, leading to overapplication of overhead. This is because Manufacturing Overhead is a control account that accumulates all overhead costs that have been assigned to Work in Process Inventory, and any variance in the amount assigned vs. the amount incurred will result in either overapplied or underapplied overhead. Therefore, option C is the correct choice.