The balance of the manufacturer overhead account is Credit of $30,000, overapplied.
- credit of $30,000, overapplied.
Underapplied Overhead vs. Overapplied Overhead
Underapplied overhead is the opposite of overapplied overhead. Overapplied overhead occurs when expenses incurred are actually less than what a company accounts for in its budget. This means that a company comes in under budget and achieves a lower amount of overhead costs during the accounting period.
Therefore, the correct answer is as given above.
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