If an Account Was Incorrectly Debited for $300 Instead of Correctly

question 76

True/False

If an account was incorrectly debited for $300 instead of correctly credited for $300, the account is out of balance by $300.

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Definitions:

Fixed Manufacturing Overhead

The total of all manufacturing costs that do not change with the level of production, including salaries of permanent employees and rent.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the applied amount, revealing how well a company utilized its fixed resources.

Fixed Overhead Budget Variance

The difference between the budgeted and actual fixed overhead costs incurred during a specified period.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries of permanent staff, and depreciation of factory equipment.