Manufacturing Overhead Was Estimated to Be $400,000 for the Year

question 32

Multiple Choice

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

• A)Cost of Goods Sold would be credited for $15,000.
• B)Cost of Goods Sold would be credited for $5,000.
• C)Cost of Goods Sold would be debited for $5,000.
• D)Cost of Goods Sold would be debited for $15,000.

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Definitions:

Product Costing

The process of determining the total cost involved in producing a product, including raw material, labor, and overhead costs.

Environmental Management Accounting

The collection, analysis, and use of financial and non-financial information to support corporate environmental management activities.

Sustainability Perspectives

Approaches or viewpoints focusing on meeting present needs without compromising the ability of future generations to meet theirs.

Environmental Management Accounting

The process of recognizing, gathering, evaluating, analyzing, internally reporting, and employing information related to materials and energy flows, environmental expenses, and other cost details for making both traditional and eco-friendly decisions within a company.