Which of the Following Statements About Under- or Overapplied Manufacturing

Multiple Choice

Which of the following statements about under- or overapplied manufacturing overhead is correct?

A) After the adjustment to transfer over- or underapplied overhead to Cost of Goods Sold Manufacturing Overhead will have a zero balance.
B) When Manufacturing Overhead has a negative balance overhead is said to be under-applied.
C) At the end of the year under- or overapplied overhead is not eliminated by adjusment.
D) When annual financial statements are prepared overapplied overhead is reported in current liabilities.