If a manufacturer underestimated the manufacturing

20. If a manufacturer underestimated the manufacturing overhead budget and overestimates the activity base for the year,
what is the result?
A. Overapplied factory overhead
B. Underapplied factory overhead
C. Overstated finished goods inventory
D. Understated work in process inventory
AACSB: Reflective
Difficulty: Medium
Learning Objective: 4.04 Use basic techniques to allocate manufacturing overhead costs to products

21. If manufacturing overhead is overapplied for the period, a method to bring the balance of the manufacturing overhead
account to zero would be:
AACSB: Reflective
Difficulty: Medium
Learning Objective: 4.04 Use basic techniques to allocate manufacturing overhead costs to products
22. The estimates used to calculate the predetermined overhead rate:
AACSB: Reflective
Difficulty: Medium
Learning Objective: 4.04 Use basic techniques to allocate manufacturing overhead costs to products
23. When underapplied or overapplied overhead is allocated among the three accounts work in process, finished goods
and cost of goods sold, this process is called:
AACSB: Reflective
Difficulty: Easy
Learning Objective: 4.04 Use basic techniques to allocate manufacturing overhead costs to products