The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:

A) Adjusted overhead.
B) Estimated overhead.
C) Predetermined overhead.
D) Underapplied overhead.
E) Overapplied overhead.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Overhead Incurred

The actual indirect costs experienced by a company during production, including utilities, rent, and salaries of employees not directly involved in production.

Overhead Applied

The allocation of overhead costs to goods produced based on a predetermined rate.