D) Some other amoun At the end of the accounting period, applied overhead was la
ID: 2578131 • Letter: D
Question
D) Some other amoun At the end of the accounting period, applied overhead was larger than actual overhead by a material amount. The overapplied overhead should be: A) Treated as an extraordinary gain. B) Closed into Cost of Goods Sold. 41. Apportioned among Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. D tenored, actual overeadis datermined onl for intermal control purposes. 2. All of the following are advantages of developing a predetermined overhead application rate except: A) Short-run fluctuations in volume of output are normalized. In a job order system, unit costs can be determined as soon as jobs are completed. ) The overhead application rate facilitates assigning overhead costs to the ending D) Actual overhead will always be less than applied overhead. inventory of work in process.Explanation / Answer
41. If the difference between the applied overhead and the actual overhead is immaterial, then it is adjusted to cost of goods sold and if the difference between the applied overhead and the actual overhead is material, then it is apportioned between the Work in Process Inventory, Finished goods Inventory and Cost of Goods Sold.
The answer is C.
42. Actual overhead can be more or less than the applied overhead resulting in the overapplied overhead or the underapplied overhead.
The answer is D.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.