Applied Overhead Exceeds Actual Overhead When the

question 74

Multiple Choice

Applied overhead exceeds actual overhead when the

• A) Overhead account has a credit balance.
• B) journal entry to account for the difference involves a debit to Cost of Goods Sold.
• C) Overhead account has a debit balance.
• D) company has overspent in the overhead cost area.

---

Definitions:

Variable Inputs

Factors of production that can be adjusted in the short term to change the level of output, such as labor or raw materials.

Production Process

The sequence of steps or operations involved in the production and manufacture of goods or services, transforming inputs into finished products.

Supply Of Labor

The total hours that workers are willing and able to work at a given wage rate.

Labor Market

A market where employers find workers and workers find jobs, characterized by supply and demand for labor.