Before Prorating the Manufacturing Overhead Costs at the End of 2016,the

question 18

Multiple Choice

Before prorating the manufacturing overhead costs at the end of 2016,the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,500 and $20,000 in them,respectively.There was no Work-in-Process at the beginning or end of 2016.During the year,manufacturing overhead costs of $74,000 were actually incurred.The balance in the Applied Manufacturing Overhead was $77,500 at the end of 2016.If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts,how much will be the Cost of Goods Sold after the proration?

• A) $58,403.
• B) $56,597.
• C) $60,197.
• D) $54,903.

---

Definitions:

Variable Interval Schedules

Are interval schedules in which the amount of time that must pass before a reward is given can change from one reward period to another.

Fixed Ratio Schedules

Are ratio schedules in which the number of times a behavior must occur before it is rewarded remains constant over time.

Reinforcement Theory

A motivational theory suggesting that behavior is driven by its consequences, with rewards increasing the likelihood of repeating behaviors.

Intrinsic Motivation

The internal drive to perform an activity for its own sake and for the satisfaction it provides, rather than for some external reward.