Sharp Company's Records Show That Overhead Was Overapplied by $10,000

question 36

Multiple Choice

Sharp Company's records show that overhead was overapplied by $10,000 last year. overapplied overhead was closed out to the Cost of Goods Sold account at the end of the year. In trying to determine why overhead was overapplied by such a large amount, the company has discovered that $6,000 of depreciation on factory equipment was charged to administrative expense in error. Given the above information, which of the following statements is true?

• A)Under the circumstances posed above, the error in recording depreciation would have no effect on net income for the year.
• B)Manufacturing overhead was actually overapplied by $16,000 for the year.
• C)The amount of $6,000 in depreciation should have been charged to Work in Process rather than to administrative expense.
• D)The company's net income is understated by $6,000 for the year.

Recognize the requirements and conditions for the negotiability of instruments.

Comprehend the roles and responsibilities of parties involved in the negotiation and endorsement of negotiable instruments.

Understand the implications of signatures and endorsements on negotiable instruments.

Recognize the special rules and exceptions regarding postdated checks and certification requests.

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Definitions:

Local Subsidiaries

Companies that operate within a specific country or region under the ownership or control of a larger parent company, often tailoring operations to local market conditions.

Globally Standardized Products

Products that are manufactured in a uniform manner and are the same in all markets around the world to achieve economies of scale and branding consistency.

Global Integration

The process of designing and implementing strategies to operate efficiently and effectively across geographical borders and cultural differences.

Corporate Culture

The shared values, beliefs, ethics, and practices that characterize an organization and guide its employees.