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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