Based on the Account Balances Below, What Is the Total

question 151

Multiple Choice

Based on the account balances below, what is the total of the debit and credit columns of the adjusted trial balance?

• A)$11,150
• B)$12,840
• C)$11,560
• D)$12,430

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Definitions:

Manufacturing Overhead

This refers to all of the indirect costs associated with the production process, such as utilities, maintenance, and salary of supervisors.

Predetermined Overhead Rate

A rate calculated at the beginning of the accounting period, based on the estimated overhead costs and estimated activity level, used to allocate overhead costs to products.

Overhead Applied

Refers to the amount of manufacturing overhead costs assigned to individual jobs based on a predetermined rate, representing the indirect costs associated with production.

Actual Overhead Costs

The real expenses incurred for overhead in a specific period, as opposed to budgeted or estimated costs.