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Celestial Inc. applies manufacturing overhead costs on the basis of machine hours. The following information...

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Accounting

Celestial Inc. applies manufacturing overhead costs on the basis of machine hours. The following information is summarized after the results for the year were determined.Actual manufacturing overhead for the year$480,000Applied manufacturing overhead for the year$465,000At the end of the year, how will any amount of over or underapplied overhead be treated assuming that year-end inventory balances are not large?Select one:a.$15,000 debit balance will remain in the Manufacturing Overhead accountb.Increase cost of goods sold by $15,000c.Decrease cost of goods sold by $15,000d.$15,000 credit balance will remain in the Manufacturing Overhead account

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