During March, Pendergraph Corporation Incurred $60,000 of Actual Manufacturing Overhead

question 153

Multiple Choice

During March, Pendergraph Corporation incurred $60,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $62,000.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

• A) credit to Manufacturing Overhead of $62,000
• B) debit to Work in Process of $60,000
• C) credit to Work in Process of $60,000
• D) debit to Manufacturing Overhead of $62,000

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Definitions:

Average Revenue

The average amount of money received per unit of product or service sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product or service.

Marginal Cost

The extra financial burden of manufacturing an additional unit of a product or service.

Price Takers

Firms or individuals who accept the market price as given and have no power to influence that price due to the competitive nature of the market.