If Over- or Underapplied Factory Overhead Would Materially Distort Net

question 3

Multiple Choice

If over- or underapplied factory overhead would materially distort net income if the entire amount was charged to Cost of Goods Sold,it should be:

• A)Carried forward in the overhead control account from year to year.
• B)Eliminated by changing the predetermined factory overhead rate in subsequent years.
• C)Apportioned among the work in process inventory,the finished goods inventory,and the cost of goods sold.
• D)Treated as a special gain or loss occurring during the year.

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Definitions:

Normally Distributed

Refers to a probability distribution that is even on both sides of its mean, indicating that values close to the mean happen more often than values far from the mean.

Standard Deviation

Represents the extent to which values in a data set differ from the average value.

Weekly Earnings

The amount of money an individual earns from work in a typical week.

Bus Drivers

Individuals who operate buses, transporting passengers between locations following a predetermined route.