At the End of the Year, Overhead Applied Was $35,000,000

question 85

Multiple Choice

At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,300,000. Closing over/under applied overhead into cost of goods sold would cause net income to:

• A) Increase by $700,000
• B) Decrease by $700,000
• C) Remain constant
• D) Decrease by $300,000

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Definitions:

Mirror Neurons

Neurons that fire both when an individual performs an action and when they observe the same action performed by another, implicated in learning, empathy, and understanding intentions of others.

Spoken Language

A method of human communication that uses the spoken word as its medium.

Gregory Hickok

A cognitive scientist known for his work on the neural basis of language, particularly in relation to speech and auditory processing.

Parietal Cortex

A region of the brain located in the parietal lobe, involved in processing sensory information from various parts of the body.