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Problem 1: Spoilage that is an inherent result of a particular production and arises even under efficient operating conditions
a. Normal spoilage
b. Abnormal spoilage
c. Defective units
d. Scrap units
Problem 2: Overapplied factory overhead would result if:
a. factory overhead costs incurred were less than costs charged to production
b. factory overhead costs incurred were unreasonably large in relation to units produced
c. factory overhead costs incurred were greater than costs charged to production
d. theoretical capacity were used in computing the overhead rate
e. the plant were operating at less than normal capacity
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