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Under-Applied Overhead at the End of a Month

Question 98

Multiple Choice

Under-applied overhead at the end of a month:


A) Results when actual overhead costs are less than amounts applied to work in process.
B) Indicates a poorly designed cost accounting system.
C) Is represented by a debit balance remaining in the Manufacturing Overhead account.
D) Is represented by a credit balance remaining in the Work in Process Inventory account.

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