[amp_mcq option1=”over applied” option2=”under applied” option3=”Both A and B” option4=”None of these” correct=”option2″]<\/p>\n
The correct answer is: B. Under applied<\/strong><\/p>\n Factory overhead is an indirect cost of production that is not easily traced to a specific product or service. It includes costs such as indirect labor, indirect materials, and factory overhead.<\/p>\n When factory overhead control account has an ending debit balance, it means that the actual factory overhead costs incurred during the period were greater than the amount of factory overhead applied to production during the period. This can happen for a number of reasons, such as inaccurate estimates of factory overhead costs, changes in production levels, or inefficiencies in production.<\/p>\n When factory overhead is under applied, it means that the company has incurred a cost that it will not be able to recover through sales. This can have a negative impact on the company’s profitability.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”over applied” option2=”under applied” option3=”Both A and B” option4=”None of these” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-47372","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n\n