Keep Corporation Joined an Affiliated Group by Merger

question 44

True/False

Keep Corporation joined an affiliated group by merger.The group generated a 2012 consolidated NOL,and Keep's share of the loss was $50,000.Keep's share of the loss is included in the group's NOL carryforward to 2013.

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Definitions:

Underapplied

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied

A situation where the estimated cost allocated to a product or job exceeds the actual costs incurred.

Fixed Overhead Budget

A financial plan that estimates the fixed costs needed to produce goods or services over a specific period.

Volume Variance

The difference between the expected (budgeted) volume of activity and the actual volume, and its impact on the budgeted costs.