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:

Pension Reserves

Funds that are set aside by a corporation or government to support its future pension obligations to its employees.

Mutual Fund Shares

Units of ownership in a mutual fund, which pools money from many investors to purchase a diversified portfolio of securities.

Corporate Equity

The ownership interest represented by shares of a company's stock.

Net Worth

The total assets minus total liabilities of an individual or company, indicating financial health.