Asked by Maren Williams on Jun 08, 2024
Verified
When underapplied or overapplied manufacturing overhead is prorated, to which of the following accounts can amounts be assigned?
A) Direct materials, manufacturing overhead and direct labour
B) Cost of goods sold, work in process and finished goods
C) Direct materials, finished goods and cost of goods sold
D) Direct materials, work in process inventory and finished goods inventory
Underapplied Manufacturing Overhead
Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred, resulting in a cost variance.
Prorated
Dividing or allocating amounts proportionally based on specific metrics or criteria, often used in billing and cost sharing.
Overapplied Manufacturing Overhead
A situation where the allocated manufacturing overhead cost is greater than the actual overhead incurred.
- Grasp the concepts of underapplied or overapplied manufacturing overhead and their adjustments.
Verified Answer
Learning Objectives
- Grasp the concepts of underapplied or overapplied manufacturing overhead and their adjustments.
Related questions
The Following Information Relates to Wells Fargo for July 2008 ...
If a Manufacturing Firm Ends the Year with Underapplied Overhead ...
Which of the Following Would Appear on the Credit Side ...
If the Manufacturing Overhead Account Has a Debit Balance at ...
If Manufacturing Overhead Has a Credit Balance at the End ...