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:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without controlling those policies.

Cash Dividends

Payments made by a corporation to its shareholders out of the company's current or retained earnings, usually in the form of cash.

Net Income

The total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Loss on Sale

A financial outcome in which the proceeds from the sale of an asset are less than its carrying value on the books.