Respond to the following discussion prompt:

At the end of each year, manufacturing overhead is analyzed, and an adjusting entry is made to dispose of the under$-$ or overapplied overhead. How would you advise a company that has had overapplied overhead for each of the last five years?

Prepare a memo to the president of the company stating your position and providing support for your decision.

Essential Activities:

Watching the video, Applying Manufacturing Overhead will assist you in writing this discussion forum.