Estimated Overhead and Direct Labor Costs for the Year Were

question 128

Multiple Choice

Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:

• A) A debit to Cost of Goods Sold for $600.
• B) A credit to Factory Overhead for $600.
• C) A credit to Finished Goods Inventory for $600.
• D) A debit to Goods in Process Inventory for $600.
• E) A credit to Cost of Goods Sold for $600.

---

Definitions:

Nursing Profession

A healthcare vocation focused on the care of individuals, families, and communities to maintain or recover optimal health and quality of life.

Biopsychosocial Focus

An approach in healthcare and psychology that considers biological, psychological, and social factors in understanding and treating illness or health conditions.

Biomedical Focus

An approach in healthcare and research that emphasizes biological factors and processes in understanding and treating diseases.

Tachycardia

A condition where the heart rate exceeds the normal resting rate, leading to rapid heartbeat.