The Following Information Was Taken from a Computer Printout Generated

question 187

Multiple Choice

The following information was taken from a computer printout generated with the least-squares method for use in estimating overhead costs: The cost formula is

• A) Overhead = $5,700 - $45X
• B) Overhead = $5,700 + $45X
• C) Overhead = $5,700 + ($45 × 0.72)
• D) Overhead = $5,700 × 0.72

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Definitions:

Chart of Accounts

A systematic listing of all accounts used by an organization, typically organized by type such as assets, liabilities, equity, revenues, and expenses.

Balance Column Journal

A type of accounting record that includes columns for recording dates, details of transactions, and corresponding debit or credit balances.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check the mathematical accuracy of the accounting entries.

Posting

The process of transferring accounting entries from the journal to the ledger accounts.