Christy's Cup Cakes Applies Overhead Based on Direct Labor Hours

question 136

Multiple Choice

Christy's Cup Cakes applies overhead based on direct labor hours.In June,Christy applied overhead of $98,620 and incurred overhead of $97,730.For the year,Christy expected total manufacturing overhead of $1,200,000.To dispose of the difference between applied and incurred overhead,Christy should

• A) Increase Cost of Goods Sold by $890
• B) Decrease Cost of Goods Sold by $890
• C) Increase Cost of Goods Sold by $2,270
• D) Decrease Cost of Goods Sold by $1,830

Understand and calculate the value of perpetuities and growing perpetuities in financial management.

Apply discount rates to evaluate and compare different cash flow streams.

Understand the implications of interest compounding frequencies on savings and loan scenarios.

Understand the fundamental concepts and historical roots of different schools of psychology.

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Definitions:

Side Effects

Unintended and usually adverse effects of a drug or medical treatment.

Halfway House

A facility that provides support and residence for people transitioning from prison, rehab, or similar situations into mainstream society.

Tertiary Prevention

Interventions designed to manage and reduce the impact of an already established disease by minimizing its symptoms and complications.

Addiction Facility

A healthcare institution specialized in the treatment and recovery of individuals suffering from addiction.