Overhead Is Applied as a Percent of Direct Labor Costs

question 64

Multiple Choice

Overhead is applied as a percent of direct labor costs.Estimated overhead and direct labor costs for the year were $250,000 and $125,000,respectively.During the year,actual overhead was $248,000 and actual direct labor cost was $123,000.The entry to close the over- or underapplied overhead at year-end,assuming an immaterial amount,would include:

• A) A debit to Cost of Goods Sold for $2,000.
• B) A debit to Factory Overhead for $2,000.
• C) A credit to Finished Goods Inventory for $2,000.
• D) A debit to Goods in Process Inventory for $2,000.
• E) A credit to Cost of Goods Sold for $2,000.

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Definitions:

Employment Interviews

Formal meetings between employers and job candidates used to assess the suitability of applicants for specific roles within an organization.

Five Stages

A reference to a framework or model dividing a process or phenomenon into five distinct phases.

Employment Interview

A formal meeting between a job applicant and a representative of the company, aimed at evaluating the applicant's suitability for the position.

Appropriateness

The quality of being suitable or fitting for a particular purpose, person, occasion, or place.