Echher Corporation Uses a Job-Order Costing System and Applies Overhead

question 133

Multiple Choice

Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700.
-The manufacturing overhead for the year was:

• A) $6,000 overapplied
• B) $10,000 overapplied
• C) $10,000 underapplied
• D) $4,000 underapplied

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Definitions:

Ladybugs

Small beetles known for their round shape, often red with black spots, and their role in controlling pests in agriculture and gardens.

Alternative Hypothesis

The hypothesis that states there is a statistically significant relationship between two variables, contrary to the null hypothesis.

Means

The statistical measure that identifies the central tendency of a data set by dividing the sum of all values by the number of values.

T-test

A statistical test used to compare the means of two groups and determine if the differences between them are statistically significant.