Figure 11-4

question 76

Multiple Choice

Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows:
Refer to Figure 11-4.Calculate the applied fixed overhead.

• A)$973,080
• B)$855,030
• C)$964,000
• D)$910,000
• E)none of these

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Definitions:

Observed Errors

The discrepancies between measured values and their true, expected, or theoretical values.

Systematic Risk

The risk inherent to the entire market or market segment, not reducible by diversification.

Stock Price

The cost of purchasing a share of a public company's stock, which fluctuates based on market demand and other factors.

Market Movements

The collective shifts and trends observed in the pricing and valuation of securities within financial markets.