Which of the following statements about under$-$ or overapplied manufacturing overhead is correct?

After the entry to transfer over$-$ or underapplied overhead to Cost of Goods Sold is posted, Manufacturing Overhead will have a zero balance.

When Manufacturing Overhead has a credit balance, overhead is said to be under$-$applied.

At the end of the year, under$-$ or overapplied overhead is eliminated by a closing entry.

When annual financial statements are prepared, overapplied overhead is reported in current liabilities.