In a Normal Costing System, an Immaterial Amount of Overapplied

question 82

Multiple Choice

In a normal costing system, an immaterial amount of overapplied overhead is allocated 100% to:

• A) Work in process
• B) Finished goods
• C) Retained earnings
• D) Cost of goods sold

---

Definitions:

Offeree

A person or entity to whom an offer is made, which they can either accept or reject.

Offeror

The individual or party that presents a proposal or contract to another party for acceptance.

Reject

To refuse to accept, submit to, believe, or make use of.

Option Contract

A contract granting an individual the right, but not the obligation, to buy or sell an asset at a future date at an agreed-upon price.