d. increase, which is a shift to the right of the demand curve.
Explanation:
A rise in consumer's income increases the demand for a normal good. In other words, as people's income increase, the consumption of normal goods goes up. Consumers consider a normal good as a product or service with high utility value.
The demand curve shows the relationship between price and demand for a commodity. A change in price causes movement along the demand curve. When demand changes, the demand curves shift its position in the graph. The demand curve will shifts to the right if the demand increases. A decrease in demand is when less of a commodity is ordered and causes the demand curve to shift inwards or to the left.
when manufacturing overhead has a credit balance, overhead is overapplied. Overapplied overhead means that the overhead assigned to work in process is greater than the overhead incurred. Also, since the amount is immaterial, it should be closed in cost of goods sold.
The adjusting entry for the overapplied over-head is:
b. debit factory overhead $5,600; credit cost of goods sold $5,600.
After posting this entry the factory overhead account will have a zero balance.