If Manufacturing Overhead Has a Negative Balance at the End

question 64

Multiple Choice

If Manufacturing Overhead has a negative balance at the end of the period then

• A)overhead has been underapplied.
• B)the overhead assigned to Work in Process Inventory is less than the overhead incurred.
• C)overhead has been overapplied.
• D)management must take corrective action.

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Definitions:

Lien

A legal right or claim against a property by a creditor, securing the payment of a debt or the performance of some obligation.

Secured Interest

An interest in personal property or fixtures that secures payment or performance to a creditor.

Consensual

Involving or based on mutual agreement or consent between the parties involved.

Statutory

Related to or enacted by a statute, referring to laws passed by a legislative body.