Melillo Corporation Has Provided Data Concerning the Company's Manufacturing Overhead

question 79

Multiple Choice

Melillo Corporation has provided data concerning the company's Manufacturing Overhead account for the month of October. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $67,000 and the total of the credits to the account was $57,000. Which of the following statements is true?

• A) Manufacturing overhead for the month was overapplied by $10,000.
• B) Actual manufacturing overhead for the month was $67,000.
• C) Manufacturing overhead applied to Work in Process for the month was $67,000.
• D) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $57,000.

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Definitions:

Absorption Costing

A costing method that includes both variable and fixed manufacturing overhead costs in the cost of a product.

Net Income

The net income a business realizes once it has subtracted all outgoings and fiscal charges from its revenue.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Salespeople Salaries

The total amount paid to employees who are responsible for selling a company's products or services.