Underapplied Overhead Means

question 94

Multiple Choice

Underapplied overhead means:

• A)too little overhead was applied to raw materials.
• B)actual overhead is greater than estimated overhead.
• C)finished goods will need to be credited.
• D)there is a debit balance remaining in the overhead account.

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Definitions:

Stale Check

A check that has not been cashed or deposited within a specified time, usually six months, making it void or invalid.

Bank

A financial institution that accepts deposits, offers various accounts, provides loans, and offers other financial services to individuals and businesses.

Restrictive Endorsement

A limitation placed on a check specifying the conditions under which it can be paid or transferred, often used for security purposes.

Pay To The Order

A phrase written on a financial instrument such as a check, indicating the person or entity to which the money is directed.