The Journal Entry to Dispose of Overapplied or Underapplied Overhead

question 48

Multiple Choice

The journal entry to dispose of overapplied or underapplied overhead, if overhead is applied based on direct labor hours, would include a credit to:

• A)Work-in-Process Inventory.
• B)Cost of Goods Sold.
• C)Finished Goods Inventory.
• D)Factory Overhead Control.
• E)Materials Inventory.

---

Definitions:

Employees' Experience

The overall perceptions and feelings employees have about their jobs, encompassing work environment, culture, relationships with coworkers, and the nature of the work itself.

Contingency Variables

External or internal factors that can influence the effectiveness of management practices and organizational strategies, often requiring adaptable approaches.

Organizational Behaviour

The study of how people interact within groups in a workplace, and how this affects individual and organizational performance, motivation, and structure.

Managerial Activity

Involves the planning, organizing, leading, and controlling of organizational resources to achieve objectives efficiently and effectively.