If the Allocated Overhead Using a Predetermined Overhead Rate Is

question 15

Multiple Choice

If the allocated overhead using a predetermined overhead rate is less than the actual overhead costs, the difference is:

• A) expensed to the statement of comprehensive income.
• B) recognised as income in the statement of comprehensive income.
• C) recognised as part of inventory on the balance sheet.
• D) expensed to the cost of goods sold.

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