As consultants, we are hired to help the company track and report costs. The Tableau Dashboard is provided to assist us in our analysis.
1. Compute gross profit. (Do not consider any underapplied or overapplied overhead.)
2. Compute overapplied or underapplied overhead.
3. If overhead is underapplied, an adjusting journal entry is required to do which of the following:
a) Increase cost of goods sold.
b) Decrease cost of goods sold.
c) Increase sales.
d) Decrease sales.