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:

Nominal Interest Rate

The interest rate before adjustments for inflation, often reported on a per annum basis.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to savers and investors.

Inflation Rate

A boost in the average pricing of goods and services across an economy over a distinct timeframe.

Diamond Rings

Jewelry pieces featuring diamonds set in a metal band, commonly used as tokens of engagement or marriage.