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Which of the following statements about under- or overapplied manufacturing overhead is correct?
a. After the entry to transfer over- or under-applied overhead to Cost of Goods Sold is posted, Manufacturing Overhead will have a zero balance.
b. When Manufacturing Overhead has a credit balance, overhead is said to be underapplied.
c. At the end of every month, under- or overapplied overhead is eliminated by a closing entry.
d. When annual financial statements are prepared, overapplied overhead is reported in current liabilities.
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