A Firm Has Many Products, Some Produced in an Automated

question 102

Multiple Choice

A firm has many products, some produced in an automated production process and some produced in a manual production process.Using direct labor hours to assign manufacturing overhead to a product manufactured with a highly automated process is likely to:

• A)Overstate overhead of the product.
• B)Understate overhead of the product.
• C)Overapply overhead to the period.
• D)Underapply overhead to the period.
• E)Have no effect on overhead of the product.