At the End of the Year, Overhead Applied Was $42,000,000

question 161

Multiple Choice

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

• A) increase by $1,700,000
• B) decrease by $1,700,000
• C) increase by $3,400,000
• D) decrease by $3,400,000

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