Under$-$applied manufacturing overhead results when:

estimated overhead is greater than actual overhead.

actual overhead is greater than estimated overhead.

actual overhead is greater than applied overhead.

production is greater than last year.

Question $17$

Which of the following would occur when recording labor costs paid in cash that are NOT traceable to a specific job?

FG Inv. increases and WIP Inv. decreases

None of the answers provided are correct.

Manufacturing Overhead temporary holding account increases and Cash decreases

WIP Inv. increases and Cash decreases