If the Consumer Price Index Was 100 in the Base

question 188

Multiple Choice

If the consumer price index was 100 in the base year and 106 in the following year,then the inflation rate was

• A)1.06 percent.
• B)6 percent.
• C)10.6 percent.
• D)106 percent.

---

Definitions:

Underapplied Overhead

Occurs when the allocated or applied overhead costs in the production process are less than the actual overhead costs incurred.

Manufacturing Overhead Account

An accounting category that records the indirect costs associated with producing goods, such as utilities for the factory or salaries for the maintenance staff.

Overapplied Manufacturing Overhead

A situation where the amount of manufacturing overhead allocated to products is more than the actual overhead incurred.

Work in Process

Inventory that includes all materials, labor, and overhead costs incurred for products that are in the production process but not yet completed.