D) Some other amoult. t the end of the accounting period, applied overhead was l
ID: 2584811 • Letter: D
Question
D) Some other amoult. t 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. Apportioned among Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. D enoref actual overedis daturmined onlyormalcrol 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 C) The overhead application rate facilitates assigning overhead costs to the ending inventory of work in process. D) Actual overhead will always be less than applied overhead.Explanation / Answer
41.
Answer of this question is option (c) Apportioned work-in-progress inventory, finished goods inventory, and cost of goods sold.
Explanation;
As we know that at the end of accounting period when applied overhead are more than actual overhead then excess amount need to be apportioned among work-in-process inventory, finished inventory and cost of goods sold.
These are apportioned for calculating accurate cost of each part like; work-in-process inventory, finished inventory and cost of goods sold.
42.
Answer of this question is option (D) Actual overhead will always be less than applied overhead.
Explanation;
We know that predetermined overhead application rate does not guarantee that actual overhead will always be less than applied overhead because predetermined overhead application rate only guide for future actual costs and actual costs may be more or less than applied overhead.
Thus this is not an advantage of developing a predetermined overhead application rate.
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