Faughn Corporation Has Provided the Following Data Concerning Manufacturing Overhead

question 199

Multiple Choice

Faughn Corporation has provided the following data concerning manufacturing overhead for July:
The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account.The company closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

• A) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
• B) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
• C) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
• D) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

---

Definitions:

Division

In logic, the process of breaking down a general statement into more detailed particular statements.

Genus

A category of classification in biology ranking above species and below family, or more generally, a class of items that share common characteristics.

Species

A collection of comparable organisms from nature able to partake in the process of interbreeding or gene swapping.

Fallacy of Division

The erroneous assumption that what is true of a whole must also be true of its parts.