If Overapplied or Underapplied Overhead Is Material,it Should Be Disposed

question 36

Multiple Choice

If overapplied or underapplied overhead is material,it should be disposed of by allocating it to:

• A)Cost of goods sold and finished goods inventory.
• B)Finished goods inventory and work in process inventory.
• C)work in process inventory,finished goods inventory,and cost of goods sold.
• D)work in process inventory.
• E)Raw materials inventory,work in process inventory,and finished goods inventory.

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Definitions:

Independent Variables

Variables in an experiment or regression model that are manipulated or categorized to determine their effect on dependent variables.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, implying a possible relationship but not causation.

Independent Variables

Variables in an experiment or model that are manipulated or classified to see their effect on dependent variables.

Dependent Variables

Variables in an experiment or model that are expected to change in response to changes in the independent variables.