1. Why is underapplied or overapplied overhead never charged to Raw Materials Inventory? A. Because overhead costs are expensed immediately in the Manufacturing Overhead control account C. Because the baiance in raw matra inventory at the end of he year is relatively smal overhead costs are consumed only as products are made C. Because the balance in raw materials inventory at the end of the year is relatively small compared to total overhead for the year D. Because the amount of overhead costs in the Raw Materials account cannot be determined in a feasible manner 2. If overapplied overhead is.considered to.be relatively large in amount, to where is it prorated upon disposal? A. As an increase to Work in Process B. Only as a decrease to Cost of Goods Sold C. To the Work in Process, Cost of Goods Manufactured, and Cost of Goods Sold accounts proportionally D. To the Raw Materials, Work in Process and Finished Goods accounts proportionally 4-16 Student Study Guide for Managerial Accounting, 2nd Edition E. To Work in Process, Finished Goods, and Cost of Goods Sold proportionally 3. At the end of the year, Manufacturing Overhead is underapplied for Marsh Company. What occurred to create this situation? A. The company incurred less total job costs than the amount budgeted for the jobs. B. The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs C. The company incurred more manufacturing overhead costs than the manufacturing overhead assigned to the jobs. D. Estimated manufacturing overhead was less than actual manufacturing overhead costs