Overapplied Manufacturing Overhead Exists When Overhead Assigned to Work in Process

question 32

Multiple Choice

Overapplied manufacturing overhead exists when overhead assigned to work in process is

• A)more than overhead incurred and there is a positive balance in Manufacturing Overhead at the end of a period.
• B)less than overhead incurred and there is a positive balance in Manufacturing Overhead at the end of a period.
• C)more than overhead incurred and there is a negative balance in Manufacturing Overhead at the end of a period.
• D)less than overhead incurred and there is a negative balance in Manufacturing Overhead at the end of a period.

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Definitions:

Without Bound

An expression indicating that there is no limit or boundary to a certain condition or value.

Time Constraint

A specific limit or period within which a task or project must be completed.

Inequality/Equality

Mathematical expressions that describe the relationship between two values, indicating whether they are unequal or equal respectively.

Monthly Profit

The net gain or income that a business generates in a particular month after all expenses are subtracted from revenues.