When job costing is in use, underapplied overhead:

a. Represents the cost of manufacturing overhead that relates to unfinished jobs.

b. Is indicated by a credit balance remaining at year-end in the Manufacturing Overhead account.

c. Is closed out at year-end into the Cost of Goods Sold account if the amount is not material.

d. Results when actual overhead costs incurred during a year are less than the amounts applied to individual jobs.