Manufacturing Overhead Was Estimated to Be $200,000 for the Year

question 37

Multiple Choice

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000 and actual labor hours were 21,000.The amount of manufacturing overhead applied to production would be:

• A)$200,000.
• B)$215,000.
• C)$210,000.
• D)$225,750.

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Definitions:

Available Seat

A term often used in the transportation industry, referring to a seat that is unoccupied and can be reserved or purchased by a customer.

Load Factor

A measurement used in transportation to assess the efficiency of a carrier by comparing the amount of utilized space or weight capacity versus the total available.

Operating Expense

Expenses incurred during the normal functioning of a business, excluding the cost of goods sold and fixed costs.

Yield

The amount of product or profit produced from a particular investment or process, measured in terms of return on investment or output per unit of input.