Assume that variable overhead is over applied by $100 and fixed overhead is under applied by $50.The effect on cost of goods sold is

Name: Assume that variable overhead is over applied by $100 and fixed overhead is under applied by $50.The effect on cost of goods sold is
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The over-applied variable overhead decreases the cost of goods sold by $100, while the under-applied fixed overhead increases it by $50. The net effect is a $50 decrease in the cost of goods sold.

Assume That Variable Overhead Is Over Applied by $100 and Fixed