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:

Data Warehouse

A centralized repository for storing, managing, and analyzing large volumes of data from multiple sources.

Internal Data Sources

Information collected from activities within the organization, used for decision making and strategic planning.

Test Market

A geographic region or demographic group used to gauge the potential success of a product or service before a wider market launch.

Experimental Market

A market or test area where new products or services are introduced to measure consumer response and behavior.