Which of the Following Statements About Under- or Overapplied Manufacturing

question 53

Multiple Choice

Which of the following statements about under- or overapplied manufacturing overhead is correct?

• A)After the adjustment to transfer over- or underapplied overhead to Cost of Goods Sold Manufacturing Overhead will have a zero balance.
• B)When Manufacturing Overhead has a negative balance overhead is said to be under-applied.
• C)At the end of the year under- or overapplied overhead is not eliminated by adjusment.
• D)When annual financial statements are prepared overapplied overhead is reported in current liabilities.

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Definitions:

Erosion

The process by which the surface of the Earth is worn away by the action of water, wind, or ice.

Terminal Moraine

Glacially carried sediment that accumulates at the terminus (end) of a glacier and a landform composed of such material; generally marks the glacier’s farthest downhill extent.

Recessional Moraine

A moraine that forms as the front of a glacier melts back and stagnates for some time in one location, depositing a pile of sediment.

Sediment

Particulate matter that accumulates in layers on the Earth's surface, deposited by water, wind, ice, or biological activity.