Which of the following would appear on the credit side of the overhead account?

A) Actual overhead cost incurred in the period
B) Overhead applied (charged) to production
C) Underapplied overhead for the period
D) Overhead applied (charged) to production AND underapplied overhead for the period

Overhead Account

An accounting term that refers to all ongoing business expenses not directly tied to a specific product or service.

Applied Overhead

This is the process of assigning estimated overhead costs to specific cost objects based on a predetermined rate or basis such as labor hours or machine hours.

Underapplied Overhead

A situation where the actual manufacturing overhead costs are higher than the overhead costs allocated to products.