Matthias Corporation Has Provided Data Concerning the Corporation's Manufacturing Overhead

question 13

Multiple Choice

Matthias Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $53,000 and the total of the credits to the account was $69,000. Which of the following statements is true?

• A) Manufacturing overhead applied to Work in Process for the month was $69,000.
• B) Manufacturing overhead for the month was underapplied by $16,000.
• C) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $53,000.
• D) Actual manufacturing overhead incurred during the month was $69,000.

Apply standard costing methods to recording transactions in a worksheet.

Analyze and interpret fixed and variable manufacturing overhead variances.

Apply standard cost variances to affect the Cost of Goods Sold.

Understand the concept of standard cost system and its application in the manufacturing industry.

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Definitions:

Procedural

Related to or involving a prescribed series of steps or methods to achieve a specific end.

System-2 Thinking

Reflective critical thinking that is useful for judgments in unfamiliar situations, for processing abstract concepts, and for deliberating when there is time for planning and more comprehensive consideration.

Comprehensive Consideration

A thorough and all-encompassing approach to analyzing or thinking about a problem, situation, or decision.

Reflective Critical

The process of critically assessing one's beliefs, judgments, and practices through introspection and consideration of external inputs.