Arvay Corporation Has Provided Data Concerning the Corporation's Manufacturing Overhead

question 108

Multiple Choice

Arvay Corporation has provided data concerning the Corporation'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 $62,000 and the total of the credits to the account was $52,000. Which of the following statements is true?

• A)Actual manufacturing overhead incurred during the month was $52,000.
• B)Manufacturing overhead applied to Work in Process for the month was $62,000.
• C)Manufacturing overhead for the month was underapplied by $10,000.
• D)Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $62,000.

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Definitions:

Gap-Filling Rules

Provisions in law that allow courts or parties to fill in missing terms in a contract.

Sale Of Goods

The transfer of ownership to tangible personal property in exchange for money, other goods, or the performance of service.

Enforceable Contract

A legal agreement between parties that is valid under the law and can be upheld in a court of law if breached.

Regular Delivery

A standard or expected schedule for the distribution of goods or messages.