ABC Company Listed the Following Data for 2010

question 7

Multiple Choice

ABC Company listed the following data for 2010:
If overhead is applied based on machine hours,the overapplied/underapplied overhead is:

• A)$15,300 underapplied.
• B)$15,300 overapplied.
• C)$10,800 underapplied.
• D)$10,800 overapplied.
• E)$-0-.

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Definitions:

Split-off Point

The stage in a process at which various products become separately identifiable and their costs can be separately assigned.

Joint Products

Two or more products that are produced from a common input.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.

Opportunity Costs

The benefits a person or business foregoes by choosing one alternative over another.