The Most Appropriate End-Of-Period Disposition of Underapplied or Overapplied Factory

Multiple Choice

The most appropriate end-of-period disposition of underapplied or overapplied factory overhead

A) Is to close the amount to cost of goods sold.
B) Is to close the amount to finished goods inventory only.
C) Is to apportion the amount to finished goods inventory and cost of goods sold.
D) Depends on the significance (that is, size) of the variance in question.
E) Is to charge the amount as a period cost, e.g., "miscellaneous expense."