When Job Costing Is in Use, Under-Applied Overhead

question 99

Multiple Choice

When job costing is in use, under-applied overhead:

• A) Represents the cost of manufacturing overhead that relates to unfinished jobs.
• B) Is indicated by a credit balance remaining at year-end in the Manufacturing Overhead account.
• C) Is closed out at year-end into the Cost of Goods Sold account if the amount is not material.
• D) Results when actual overhead costs incurred during a year are less than the amounts applied to individual jobs.

Understand and calculate the standard deviation of a probability distribution.

Understand and apply the concept of independent events in probability.

Calculate the probability of a specific outcome given a probability distribution.

Understand and apply the Poisson distribution to model certain types of random events.

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Definitions:

Potassium Feldspar

A very common silicate mineral that contains potassium; synonym: K-feldspar.

Meteorite

A solid piece of debris from an object, such as a comet, asteroid, or meteoroid, that originates in outer space and survives its passage through the Earth's atmosphere to reach the ground.

Nonsilicates

Minerals that do not contain silicon-oxygen tetrahedra, including classes like oxides, sulfides, and carbonates.

Silicon

A chemical element, symbol Si, known for its semiconductor properties and widely used in electronic devices and solar cells.