If Manufacturing Overhead Has a Debit Balance at the End

question 83

Multiple Choice

If Manufacturing Overhead has a debit balance at the end of the period then

• A) overhead has been underapplied.
• B) the overhead assigned to Work in Process Inventory is more than the overhead incurred.
• C) overhead has been overapplied.
• D) management must take corrective action.

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Definitions:

Effort Justification

A phenomenon where people attribute a greater value to an outcome they had to put effort into achieving, often to reduce cognitive dissonance.

Post-Decision Dissonance

A form of regret or psychological discomfort experienced after making a challenging decision.

Attitude-Behavior Consistency

The degree to which a person's attitudes (feelings and beliefs) are reflected in their behaviors or actions.

Behavioral Intention

The motivational factors that predict an individual’s planned actions or behaviors, influenced by attitudes and perceptions.