A Company Assigned Overhead to Work in Process

question 101

Multiple Choice

A company assigned overhead to work in process. At year end what does the amount of overapplied overhead mean?

• A) The overhead assigned to work in process is greater than the estimated overhead costs.
• B) The overhead assigned to work in process is less than the estimated overhead costs.
• C) The overhead assigned to work in process is less than the actual overhead.
• D) The overhead assigned to work in process is greater than the overhead incurred.

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Definitions:

Revenue Model

Describes the strategy by which a business generates income from its operations, products, or services, highlighting different revenue streams.

Business Model

Describes the rationale of how a new venture creates, delivers, and captures value.

Income

The monetary payment received for goods or services, or from other sources, such as wages or investments.

Intermediation Revenue Model

The different methods by which third parties such as brokers (or “middlemen”) can generate money.