23. Actual averhead exceeds applied overhead and the amount is immaterial.

Which of the following wil

be true? Upon closng.

Ovechead is Cosaf mds Sold will

underaPped ncrease
oveapplied decreane
nredse
d. underapplcd decrease

ANS: . A DIF: Easy OB:32

24. Ifactual overhead is les than applied overhend, which of the folowing will be true? Upon closing.

ONrbead is Cos a Gioods Soldis

credited
D.
underappled
underapplied
debiicd
OepPpu debiod
ed
d. oeraPpliea

ANS: D DIF: Easy OBJ: 3-2

25. The estimated maximim potetial activity for a specified

armaltime
capacity
is:
theoretical capacity
norma
b. practical capacity d expected capacity

ANS: DIF: Moderate

OB 3-3

26. The measure of activity that allows tor routine vanations in manutacturmg activny Is:
C. norml capaciny
aheorencal capacty
D. pracncnl capacuy
a.epected capacty
ANS: B DIF: Moderate OBJ: 3-3

27. The measure of productian that considers historical and estimated future productian levels and cyclical
to as:
ucnatons Is rerered C. normal capacity
mcoretucal capacity
practiCl capacity d. expectecd capacity

ANS: C DIF: Moderate OBJ: 3-3

28. A short-run measure of activity that represents a fim's anticipated activity level for an upcoming
period baseu upon expECted demand is teterrcu ax

a corencal capacity
b. practical capacity d expected capacity

ANS: D DIF: Moderate OBJ: 3-3