If overhead is underapplied all of the following are true except:

A) The Factory Overhead account has a debit balance.
B) Jobs are undercosted.
C) Jobs are overcosted.
D) The adjusting journal entry requires a debit to Cost of Goods Sold.
E) The adjusting journal entry requires a credit to Factory Overhead.

Underapplied Overhead

A situation where the allocated manufacturing overhead is less than the actual overhead incurred.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of administrative personnel within a factory, but not directly tied to specific units of production.

Overcosted

A situation where the allocated cost of a product or service is greater than the actual cost incurred, leading to potential mispricing or profit loss.