At the End of the Year, Overhead Applied Was $42,000,000

question 161

Multiple Choice

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

• A) increase by $1,700,000
• B) decrease by $1,700,000
• C) increase by $3,400,000
• D) decrease by $3,400,000

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Definitions:

Iterative Process

A method of operation that involves repeating a series of steps to achieve a goal or refine results with each repetition.

ASP

Stands for Active Server Pages, a Microsoft technology for dynamically generated web pages that also refers to Application Service Provider, a business providing computer-based services to customers over a network.

Hidden Backlog

Unrecognized or undisclosed work that remains to be done or issues that have not been addressed in a project or system.

Software Package

A collection of software programs and documentation related to a specific application or utility for distribution.