A Company Assigned Overhead to Work in Process

question 93

Multiple Choice

A company assigned overhead to work in process.At year end what does the amount of overapplied overhead mean?

• A)The overhead applied to work in process is greater than the estimated overhead costs.
• B)The overhead applied to work in process is less than the estimated overhead costs.
• C)The overhead applied to work in process is less than the actual overhead.
• D)The overhead applied to work in process is greater than the overhead incurred.

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Definitions:

Licensed Mechanics

Professionals who have received formal authorization or certification to conduct mechanical repairs or services, demonstrating they meet certain standards or qualifications.

Negligently Performed

The execution of an action with a lack of care that is considered below the standard expected of a reasonably prudent person under similar circumstances.

Novation

The process of replacing an obligation to perform with a new obligation or replacing a party to an agreement with a new party.

Statutory Assignment

An assignment of rights that an assignee may enforce if certain conditions are met by the assignment.