Under Normal Costing, Which of the Following Statements Is True

question 29

Multiple Choice

Under normal costing, which of the following statements is true regarding factory overhead?

• A)The balance in factory overhead at the end of the accounting period is closed.
• B)Different overhead rates are used for different quantities of predicted activity.
• C)The balance in factory overhead at the end of the accounting period is kept open.
• D)The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of goods sold and inventory accounts.