Which of the Following Statements Is True

question 109

Multiple Choice

Which of the following statements is true?

• A) Actual overhead costs are entered as credits to Manufacturing Overhead
• B) Manufacturing Overhead is debited when overhead is applied
• C) When the credit balance in Manufacturing Overhead exceeds the debit balance in Manufacturing Overhead, manufacturing overhead has been underapplied
• D) When the debit balance in Manufacturing Overhead exceeds the credit balance in Manufacturing Overhead, manufacturing overhead has been underapplied

---

Definitions:

Faithless Servant Doctrine

A legal principle that allows employers to recover compensation paid to an employee who has acted disloyally or in breach of contract.

Defendant Compensation

Financial or other forms of reparation awarded to a defendant, typically in civil lawsuits where the defendant may counter-claim against the plaintiff.

Plaintiff Forfeiture

A legal penalty where a plaintiff loses the right to claim certain benefits or privileges due to a failure to meet necessary legal requirements or actions.

Agency Relationship

A legal bond in which one person, the agent, acts on behalf of another, the principal, in transactions with third parties.