Tb chap 3 - 1 The journal entry to apply overhead to production involves a debit to a Work in Process Inventory b Cost of Goods Sold c Wages and

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1. The journal entry to apply overhead to production involves a debit to: a. Work in Process Inventory. b. Cost of Goods Sold. c. Wages and Salaries Payable. d. Manufacturing Overhead. correct: a 2. Theoretical capacity: a. is a measure that encompasses the firm's long-run average activity. b. represents an attainable level of activity. c. assumes that all production factors are operating perfectly. d. represents a capacity that could be achieved during normal working hours considering regular operating interruptions such as holidays. correct: c 3. If the amount of underapplied overhead is not significant at the end of the accounting period, the balance should be charged to: a. work in process. b. overhead. c. cost of goods sold. d. work in process, finished goods, and cost of goods sold. correct: c 4. A planning document that presents expected variable and fixed overhead costs at different activity levels is the: a. absorption costing model. b.
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This note was uploaded on 12/12/2008 for the course ACCT 310 taught by Professor Nacemagner during the Fall '08 term at Western Kentucky University.

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Tb chap 3 - 1 The journal entry to apply overhead to production involves a debit to a Work in Process Inventory b Cost of Goods Sold c Wages and

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