Which of the following statements about under- or overappliedmanufacturing overhead is correct?

a. After the entry to transferover- or under-applied overhead to Cost of Goods Sold is posted,Manufacturing Overhead will have a zero balance.

b. When Manufacturing Overhead hasa credit balance, overhead is said to be underapplied.

c. At the end of everymonth, under- or overapplied overhead is eliminated by a closingentry.

d. When annual financialstatements are prepared, overapplied overhead is reported incurrent liabilities.