Which One of the Following Is the Amount That Actual

question 77

Multiple Choice

Which one of the following is the amount that actual factory overhead exceeds the factory overhead applied?

• A)Factory overhead applied.
• B)Actual factory overhead.
• C)Overapplied overhead.
• D)Allocated factory overhead.
• E)Underapplied overhead.

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Definitions:

Total Fixed Cost

Total Fixed Cost is the sum of all costs that remain constant regardless of the level of production or business activity.

Economies of Scale

Businesses gain cost benefits from increasing their scale of operations, leading to a decline in the cost per unit of output as the production size enlarges.

Q₄

Refers typically to the fourth quarter of a financial year, marking the last segment of the fiscal calendar for businesses and economies.