A $150 Debit Item Is Accidentally Posted as a Credit

question 36

Multiple Choice

A $150 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

• A) $0.
• B) $75.
• C) $150.
• D) $300.

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Definitions:

Machine-Hours

A metric for the amount of time a machine is operational, typically used in manufacturing processes.

Fixed Costs

Costs that do not vary with the level of production or sales over a short period, such as rent, salaries, and insurance.

Estimated Activity

The projected level of activity used to allocate overhead costs, often based on metrics such as machine hours or labor hours.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead to products based on a relevant activity base.