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  • Known As: Applied Overhead, Factory Be

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    Khaled
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    In a normal costing system, factory overhead is assigned to an overhead control account and then allocated to products and services using a predetermined rate. This predetermined rate used to assign overhead to work-in-process inventory is known as applied overhead. If actual overhead exceeds applied overhead, factory overhead is said to be underapplied. If actual overhead is less than applied overhead, factory overhead is said to be overapplied.

    Original Description:

    Cost accounting foundations and evolutions

    Original Title

    Cost Accounting

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    In a normal costing system, factory overhead is assigned to an overhead control account and then allocated to products and services using a predetermined rate. This predetermined rate used to assign overhead to work-in-process inventory is known as applied overhead. If actual overhead exceeds applied overhead, factory overhead is said to be underapplied. If actual overhead is less than applied overhead, factory overhead is said to be overapplied.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    3 views1 page

    Known As: Applied Overhead, Factory Be

    Uploaded by

    Khaled
    In a normal costing system, factory overhead is assigned to an overhead control account and then allocated to products and services using a predetermined rate. This predetermined rate used to assign overhead to work-in-process inventory is known as applied overhead. If actual overhead exceeds applied overhead, factory overhead is said to be underapplied. If actual overhead is less than applied overhead, factory overhead is said to be overapplied.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    .

    In a(n) cast system, factory overhead is aSsigned to an overhead control account and then
    allocated to products and services.

    ANS: nomal

    Easy OBJ:
    DIF -

    3. h e dollar amount of overhead assigned to work-m-process inventory using a predetermined rate is

    known as overhead.

    ANS: apid

    DIF: Easy
    OB)
    4. lfactual overhead excerds applied overhead, factory overhad is said to be_
    ANS: undrpplxd

    DIF 2
    Easy OB
    S. If actual overhead is less than applied overhead, factory overhad is said to be .

    ANS: ovemplicd

    DIF: Easy OB: 3-2

    lf underapplied or overapplied lactory overhcad Is maternl, it is prorated among


    nd
    ANS: Wark in Process Invertory, Finished Goods Inventory. Cost of Goods Sold

    DIF: Easy OB: 3-2

    If underapplicd or overapplied faxtory overhead is immakerial. it is charged to

    ANS: Co of Goods Sold

    DIF: Easy OBJ: 3.2

    8. The performance measure that considers routine interruptions is known a


    capicity
    ANS: padkal

    DIF: Moderate OBJ: 3-3

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