Question
6 1 pts A company uses normal costing and has overallocated overhead of $6,000 during the most recent period. When this $6,000 is closed totally
6 1 pts A company uses normal costing and has overallocated overhead of $6,000 during the most recent period. When this $6,000 is closed totally to Cost of Goods Sold, the company has $50,000 in net operating income. If the company prorated the overallocated overhead, $1,500 would be allocated to Work in Process, $2,100 to Finished Goods, and $2,400 to Cost of Goods Sold. If the company prorates the $6,000, net operating income would be O more than $50,000 O less than $50,000 O $50,000 2 pts Question 7 Refer to question 6. If the company prorated the $6,000 overallocated overhead instead of charging it totally to Cost of Goods Sold, how much would the net operating income change? Note that I am NOT asking you what the new NOI would be. I am just asking how much it would change. $1,500 O None of these answers are correct. $3,600 $2,400 O $2,100
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