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Question
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to
a. increase by $1,700,000
b. decrease by $1,700,000
c. increase by $3,400,000
d. decrease by $3,400,000
Answer
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