Faughn Corporation Has Provided the Following Data Concerning Manufacturing Overhead

question 138

Multiple Choice

Faughn Corporation has provided the following data concerning manufacturing overhead for July: The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?

• A) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
• B) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
• C) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
• D) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

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Definitions:

Dependent Personality Disorder

A mental health condition characterized by an overreliance on others for emotional support and decision making.

Cognitive-Behaviorist

A practitioner of a psychological approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Upbringing

The care, teaching, and training provided to a child by parents or guardians from infancy through adulthood.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.