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Bill's behaviors in Ms. Kennedy's class are really distracting to other students. For example, he whispers to the boy beside him when Ms. Kennedy is giving directions on how to do any assignment. He flings paper clips at a girl across the room. He makes strange grunting noises that a few classmates find amusing. Ms. Kennedy glares at him or admonishes him whenever he behaves in a distracting way, yet his inappropriate behaviors are increasing rather than decreasing. Which one of the following interpretations of this situation best explains why Bill's behaviors are increasing?
Predetermined Overhead Rate
A rate calculated before a period begins, used to apply manufacturing overhead costs to products based on a relevant activity, such as machine hours or labor hours.
Underapplied
Describes a situation where the allocated overhead costs in accounting are less than the actual overhead costs incurred.
Overapplied
A scenario in which the overhead cost assigned to manufacturing exceeds the overhead that was actually incurred.
Direct Labor-Hours
A measure of the labor directly involved in manufacturing a product, represented in hours.
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