Estimated Overhead and Direct Labor Costs for the Year Were

question 128

Multiple Choice

Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:

• A) A debit to Cost of Goods Sold for $600.
• B) A credit to Factory Overhead for $600.
• C) A credit to Finished Goods Inventory for $600.
• D) A debit to Goods in Process Inventory for $600.
• E) A credit to Cost of Goods Sold for $600.

Identify the roles and jobs of money in an economy.

Describe the Keynesian motives for holding money.

Differentiate between what is considered money and what is not in the economy.

Comprehend the factors influencing the motives for holding money.

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Definitions:

Radio Broadcast

The transmission of audio content through radio waves to reach a wide audience, commonly used for music, news, and entertainment programming.

Consumers

Individuals or organizations that purchase goods or services for personal use or consumption.

Imperfect Information

A situation where all parties in an economic transaction do not have equal access to relevant information.

Marginal Benefit

Marginal benefit is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.