When using a standard process costing system, under-applied overhead is:
A)Carried over to the next period.
B)Combined with period costs.
C)Disposed of.
D)Ignored.
E)None of the above.

Question

Quizplus · Accepted Answer

Under-applied overhead is disposed of by either allocating it to cost of goods sold or adjusting it among work in process, finished goods, and cost of goods sold.

When Using a Standard Process Costing System, Under-Applied Overhead Is