Assume That Variable Overhead Is Overapplied by $200 and Fixed

question 56

Multiple Choice

Assume that variable overhead is overapplied by $200 and fixed overhead is underapplied by $100. If these variances are considered immaterial, the effect on cost of goods sold is:

• A) $300 increase
• B) $100 increase
• C) $300 decrease
• D) $100 decrease

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Definitions:

Herzberg's Theories

A motivational theory, which distinguishes between hygiene factors that can prevent dissatisfaction, and motivators that can lead to satisfaction in the workplace.

Employee Engagement

The level of enthusiasm and dedication a worker feels towards their job, characterized by emotional attachment and willingness to go above and beyond.

Financial Performance

A measurement of how well an entity is using its assets to generate earnings, often evaluated through indicators like revenue, profit, and return on investment.

Volatile Economic Times

Periods characterized by rapid and unpredictable changes in economic conditions, affecting stability and decision-making.