If a Company Applies Overhead to Jobs on the Basis

question 145

Multiple Choice

If a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit balance in the Manufacturing Overhead account at the end of any period means that:

• A) more overhead cost has been charged to jobs than has been incurred during the period.
• B) more overhead cost has been incurred during the period than has been charged to jobs.
• C) the amount of overhead cost charged to jobs is greater than the estimated cost for the period.
• D) the amount of overhead cost charged to jobs is less than the estimated overhead cost for the period.

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Definitions:

Alleged Benefits

Claimed advantages or positive outcomes that may not have been fully verified or proven.

Voluntary Export Restriction

An agreement by a country to limit the quantity of goods exported to another country to avoid tariffs or quotas.

Import Quota

A government-imposed limit on the quantity or value of a specific commodity that can be imported into a country.

Protective Tariff

A tax imposed on imported goods to shield domestic industries from foreign competition by making imported goods more expensive.