Assume That Variable Overhead Is Overapplied by $200 and Fixed

question 56

Multiple Choice

Assume that variable overhead is overapplied by $200 and fixed overhead is underapplied by $100. If these variances are considered immaterial, the effect on cost of goods sold is:

• A) $300 increase
• B) $100 increase
• C) $300 decrease
• D) $100 decrease

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