Under normal costing, which of the following statements is true regarding factory overhead?
A)The balance in factory overhead at the end of the accounting period is closed.
B)Different overhead rates are used for different quantities of predicted activity.
C)The balance in factory overhead at the end of the accounting period is kept open.
D)The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of goods sold and inventory accounts.

Question

Quizplus · Accepted Answer

Under normal costing, the balance in factory overhead at the end of the accounting period is closed to adjust for any over- or under-applied overhead.

Under Normal Costing, Which of the Following Statements Is True