Clemmens Company Applies Overhead Based on Direct Labor Cost

question 46

Multiple Choice

Clemmens Company applies overhead based on direct labor cost.Estimated overhead and direct labor costs for the year were $112,500 and $125,000,respectively.During the year,actual overhead was $107,400 and actual direct labor cost was $120,000.The entry to close the over- or underapplied overhead at year-end,assuming an immaterial amount,would include:

• A)A debit to Cost of Goods Sold for $600.
• B)A credit to Factory Overhead for $600.
• C)A credit to Finished Goods Inventory for $600.
• D)A debit to Work in Process Inventory for $600.
• E)A credit to Cost of Goods Sold for $600.

Understand the implications of empowerment in leadership.

Understand the basic concepts and differences between hedge fund strategies, such as market-neutral and long-short hedges.

Comprehend how hedge fund managers are compensated, including management fees and incentive bonuses.

Recognize the financial requirements for investments in hedge funds, including the typical initial investment range.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, regardless of when the transaction occurred.

Financial Statements

Papers presenting a snapshot of a firm's financial health, which include the balance sheet, income statement, and cash flow statement.

Accurate

The quality of being precise, correct, and free from errors.

Adjust Expense

The process of allocating expenses incurred in one period to the correct period, often through adjusting entries in the accounting records.