If Manufacturing Overhead Has Been Overallocated During the Period, and Most

question 289

Multiple Choice

If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then

• A)Cost of Goods Sold on the income statement should be increased.
• B)Cost of Goods Sold on the income statement should be decreased.
• C)finished goods inventory should be increased.
• D)work in process inventory should be decreased.

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Definitions:

Standard Deviation

A gauge of the spread or scatter of numbers in a collection.

Lower Control Limit

The lower control limit is the statistical lower boundary on a control chart, helping to identify process variation or signal the need for corrective action if data points fall beyond this limit.

Upper Control Limit

The highest value on a control chart that signals the process is in control and within set parameters.

Sample Proportion

The fraction or percentage of individuals or items in a subset of a population that meet a specified criterion, used to estimate the true proportion.