The Cost Accountants at the Doering Company Regressed Total Overhead

question 33

Multiple Choice

The cost accountants at the Doering Company regressed total overhead costs and direct labor hours for the past 30-months and reported the following results: What is the estimated overhead cost if 225 direct labor hours are expected to be used in the upcoming period? (rounded to the nearest whole dollar)

• A)$10,534
• B)$9,882
• C)$9,230
• D)$8,617

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Definitions:

Assembly Department

A section within a manufacturing facility where components are assembled into final products or where significant assembly work is performed.

Total Overhead Applied

The total amount of overhead costs allocated to products or services based on a predetermined overhead rate.

Forming Department

A specific area or segment within a manufacturing facility where raw materials are transformed into intermediate or finished products through a series of processes.

Assembly Department

A segment of a manufacturing company where components are assembled into final products, often involving workers and machinery in a line or cell formation.