1. When the amount of overapplied manufacturing overhead os significant, the netry to close Overapplied Manufacturing Overhead will most likely require: a. A debit to Cost of Goods Sold b. Debits to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory c. A credit to Cost of Goods Sold d. Credit to Cost of Goods Sold, Finsihed Goods Inventory, and Work in Process Inventory.

2. An objection to the use of predetermined overhea rate based on direct labor costs is that a. These items are difficult to measure. b. A job is charged with more overhead when a highly paid operator works on the job than when a low paid operator performs the work. c. Overhead is allocated in relation to units produced by workers. d. Overhead rate will be distributed inequitable when there are no wage differentials in the department.

3. All of the following phrases are used as alternate terminology for manufacturing overhead except: a. Manufacturing expense b. Indirect manufacturing cost c. Factory expense d. Other expense. 4. A debit balance in the manufacturing overhead control account is: a. Overapplied overhead c. Idle capacity variance b. Underapplied overhead d. Spending variance. 5. Overhead manufacturing overhead would result if: a. Manufacturing overhead costs incurred were less than costs charged to production. b. Manufacturing overhead costs incurred were unreasonably large in relation to units produced. c. Manufacturing overhead costs incurred were greater than costs charged to production. d. The plants were operating at less than normal capacity.