Reyes Corporation Applies Overhead Using a Normal Costing Approach Based

question 82

Multiple Choice

Reyes Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. Actual factory overhead was $287,920, actual machine-hours were 19,050.
- How much is the over- or underapplied overhead?

• A) $21,520 underapplied.
• B) $13,600 underapplied.
• C) $7,920 overapplied.
• D) $0.

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Definitions:

Charity

The act of giving help, typically in the form of money, to those in need.

Egotistical Altruism

A form of altruism driven by self-benefit, where helping others is also seen as indirectly beneficial to oneself.

Psychological Egoism

The theory that suggests individuals are always motivated by self-interest, even in what seem to be acts of altruism.

Ethical Hedonism

A philosophy that suggests the pursuit of pleasure and the avoidance of pain are the only components of a good and ethical life.