The Entry to Dispose of the Underapplied or Overapplied Overhead

question 85

Multiple Choice

The entry to dispose of the underapplied or overapplied overhead cost for the month would include:

• A) a debit of $50 to Cost of Goods Sold.
• B) a debit of $50 to Manufacturing Overhead.
• C) a debit of $5,500 to Manufacturing Overhead.
• D) a credit of $5,500 to Cost of Goods Sold.

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Definitions:

Null Hypothesis

A hypothesis in statistical testing that there is no effect or no difference, and any observed deviation is due to sampling or experimental error.

Significance Level

A threshold below which a p-value is considered statistically significant, indicating that observed results are unlikely to be due to chance.

Critical Value

The point or points on the scale of a test statistic beyond which we reject the null hypothesis; these values define the threshold of significance.

Test Statistic

A value, derived from sample data, used in a hypothesis test to determine whether to reject the null hypothesis.