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Question 31 If a company uses a predetermined overhead rate to apply overhead costs to production, a CREDIT balance in the Manufacturing Overhead account indicates that... ...less overhead cost has been applied to production than has actually been incurred. O ...less overhead cost has actually been incurred during the period than has been applied to production. O ...prior to any adjusting entries, not enough overhead has been recorded in Cost of Goods Sold. O ...prior to any adjusting entries, not enough overhead has been recorded in Finished Goods Inventory. ...prior to any adjusting entries, not enough overhead has been recorded in Work in Process Inventory