Adams Manufacturing Allocates Overhead to Production on the Basis of Direct

question 7

Multiple Choice

Adams Manufacturing allocates overhead to production on the basis of direct labor costs.At the beginning of the year,Adams estimated total overhead of $396,000;materials of $410,000 and direct labor of $220,000.During the year Adams incurred $418,000 in materials costs,$413,200 in overhead costs and $224,000 in direct labor costs.Compute the amount of under- or overapplied overhead for the year.

• A)$10,000 overapplied.
• B)$17,200 overapplied.
• C)$10,000 underapplied.
• D)$17,200 underapplied.
• E)$4,800 underapplieD.OH rate = $396,000/$220,000 = 180%

---

Definitions:

Punishments

Refers to penalties imposed for wrongdoing, often with the intention of correcting behavior or serving as a deterrent to others.

Discriminatory Practices

Actions or policies that treat individuals or groups unfairly based on characteristics such as race, gender, age, or sexual orientation.

Socialized

The process through which individuals learn and internalize the values, beliefs, and norms of their society or social group, influencing their behavior and perceptions.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.