If a Company Chooses to Spread Overapplied or Underapplied Overhead

question 64

Multiple Choice

If a company chooses to spread overapplied or underapplied overhead to all the accounts that contain applied overhead,the proration should be based on

• A)Equally.
• B)The relative size of the ending balance in each account.
• C)The account that has had the least overhead applied to it during the month.
• D)None of these ans choices are correct.

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