When Too Much Overhead Cost Is Charged to Products as They

question 137

Multiple Choice

When too much overhead cost is charged to products as they are made,the result is

• A)overapplied overhead.
• B)underapplied overhead.
• C)understatement of Cost of Goods Sold.
• D)understatement of Inventory cost.

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Definitions:

Pounds

A unit of weight commonly used in the United States, equivalent to 16 ounces.

Gold

A precious metal with a yellow color, used in jewelry, electronics, and as an investment commodity.

Silver

A precious metal with high electrical conductivity and thermal conductivity, widely used in jewelry, currency, and various industrial applications.

Ounces

A unit of weight in the avoirdupois system, equivalent to 1/16th of a pound or approximately 28.349 grams.