Scooby Company Has Applied $567,988 of Overhead into Production on Jobs

question 83

Multiple Choice

Scooby Company has applied $567,988 of overhead into production on Jobs in the Work in Process account. Actual overhead at the end of the year is $575,000. What is the adjustment for over or underapplied overhead?

• A) $7012 Overapplied, increase Cost of Goods Sold
• B) $7012 Underapplied, increase Cost of Goods Sold
• C) $7012 Overapplied, decrease Cost of Goods Sold
• D) $7012 Underapplied, decrease Cost of Goods Sold

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Definitions:

Insulin Production

The process by which the pancreas generates insulin, a hormone essential for regulating blood glucose levels.

Juxtaglomerular Cell

A cell located near the glomerulus of the kidney that helps to regulate blood pressure by secreting renin.

Aldosterone

A steroid hormone produced by the adrenal glands that regulates sodium and potassium balance in the blood.

Renin

An enzyme secreted by the kidneys that helps regulate blood pressure by activating the angiotensinogen to angiotensin conversion.