An Increase in the Demand for a Product Will Shift

question 107

Multiple Choice

An increase in the demand for a product will shift the demand for labor used to produce the product:

• A) downward.
• B) leftward.
• C) rightward.
• D) none of these, the curve will not shift.

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Definitions:

Overapplied

When the overhead cost allocated to products exceeds the actual overhead costs incurred, requiring adjustment.

Underapplied

A situation where the actual manufacturing overhead costs are higher than the amount allocated to products.

Job-Order Costing System

A job-order costing system is an accounting method that tracks and accumulates costs for individual jobs or batches, which are distinct and can be separately identified.

Overapplied

A term used in accounting when the allocated overhead costs are more than the actual overhead costs incurred.