The Following Data Is Available for Sykes Company, a Small $\quad$

question 167

Multiple Choice

The following data is available for Sykes Company, a small manufacturing firm, for the month of October:
Actual manufacturing overhead costs incurred $\quad$ $58,000
Manufacturing overhead Allocated to jobs $\quad$$\quad$ $\quad$ 56,000
Under allocated manufacturing overhead $\quad$$\quad$$\quad$ $2,000

Assume that the amount of under allocated manufacturing overhead is not material.
Sykes Company will dispose of the under allocation by

• A) increasing cost of goods sold by $2,000.
• B) decreasing cost of goods sold by $2,000.
• C) reducing cost of goods manufactured by $2,000.
• D) decreasing cost of goods manufactured by $2,000.

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Definitions:

Nuclear Power

Energy produced from nuclear reactions, often used for electricity generation in nuclear power plants.

Homeland Security

A concerted national effort to prevent terrorist attacks within the United States, reduce the country's vulnerability to terrorism, and minimize the damage from attacks that do occur.

Nuclear Fission

A nuclear reaction in which a heavy nucleus splits spontaneously or on impact with another particle, releasing energy.

Radioactive Waste

Waste material containing radioactive substances which poses serious risks to human health and the environment if not properly managed.