The Entry to Record the Application of Overhead to Jobs

question 72

Multiple Choice

The entry to record the application of overhead to jobs consists of:

• A)a debit to Manufacturing Overhead Applied and a credit to Manufacturing Overhead.
• B)a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.
• C)a debit to Manufacturing Overhead and a credit to Manufacturing Overhead Applied.
• D)a debit to Manufacturing Overhead Applied and a credit to Work in Process Inventory.

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Definitions:

Variances

The difference between expected and actual performance, costs, or revenues, often analyzed in budgeting and accounting to manage and improve financial performance.

Direct Labour Costs

Expenses associated with the labor directly involved in the production of goods or services.

Sales Price Variance

The difference between the actual sales revenues received and the expected revenues at standard selling prices.

Master Products

Core products that represent the primary focus or business of a company, often driving its strategic direction.