Which of the Following Statements Is True If a Company

question 104

Multiple Choice

Which of the following statements is true if a company applies overhead to jobs on the basis of a predetermined overhead rate and reports a credit balance in the Manufacturing Overhead account at the end of any period?

• A) More overhead cost has been charged to jobs than has been incurred during the period.
• B) More overhead cost has been incurred during the period than has been charged to jobs.
• C) The amount of overhead cost charged to jobs is greater than the estimated cost for the period.
• D) The amount of overhead cost charged to jobs is less than the estimated overhead cost for the perioD.

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Definitions:

Verbal Evidence

Evidence presented in the form of words, spoken or written, as opposed to physical evidence or demonstrations, used in legal proceedings.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing in order to be enforceable.

Illegal

Actions or conduct that the law forbids and for which there are punitive consequences.

Breach of Contract

The failure to fulfill the terms of a contract without lawful excuse.