When the APS Is Negative

question 26

Multiple Choice

When the APS is negative

• A)the APC is less than one.
• B)the APC is equal to one.
• C)the APC is greater than one.
• D)the APC may be less than one,one or greater than one.

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Definitions:

Job Cost Sheet

A document that records the materials, labor, and manufacturing overhead costs assigned to each individual job or project.

Direct Labor

The work of factory employees that can be directly traced to the individual units of product.

Factory Overhead Applied

The allocation of estimated manufacturing overhead costs to individual units of production based on a predetermined rate.

Underapplied

A situation where the actual costs are higher than the costs applied or allocated, typically in manufacturing overhead.