If a Company Applies Overhead to Jobs on the Basis

question 102

Multiple Choice

If a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit balance in the Manufacturing Overhead account at the end of any period means that:

• A)the amount of overhead cost charged to jobs is less than the estimated overhead cost for the period.
• B)more overhead cost has been charged to jobs than has been incurred during the period.
• C)the amount of overhead cost charged to jobs is greater than the estimated cost for the period.
• D)more overhead cost has been incurred during the period than has been charged to jobs.

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Definitions:

Severe Penalties

Punishments or sanctions that are especially harsh or stringent, typically applied in legal contexts.

Financial Intermediaries

Institutions that facilitate the channeling of funds from savers to borrowers by intermediating between them.

Credit Needs

The requirement for borrowing funds to finance purchases, investments, or to bridge gaps in cash flow.

Security Needs

The requirement to protect a nation, organization, or individual from various threats, including cyber attacks, terrorism, and theft.