Before Prorating the Manufacturing Overhead Costs at the End of 2012,the

question 57

Multiple Choice

Before prorating the manufacturing overhead costs at the end of 2012,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 2012.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 2012.If the under or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts,how much will be allocated to the Finished Goods Inventory?

• A)$903.
• B)$1,217.
• C)$1,283.
• D)$2,597.

---

Definitions:

Voluntary

Actions, behaviors, or associations that are undertaken willingly and without coercion.

Age Differentiation

The process of categorizing and treating individuals differently based on their age, often leading to stereotyping and discrimination, especially in the workplace or in marketing.

Functional Theory

A sociological perspective that emphasizes the social functions of institutions and practices and how they contribute to the stability and cohesion of society.

Common Good

The benefit or interests of all participants or members of a society or community, as opposed to the benefit of a single individual.