Reyes Corporation Applies Overhead Using an Actual Costing Approach

question 10

Multiple Choice

Reyes Corporation applies overhead using an actual costing approach. 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 overhead would be applied to production?

• A) $266,400.
• B) $274,320.
• C) $279,607.
• D) $287,920.

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Definitions:

Future Cash Flows

Estimated streams of future financial income or expenditure, related to investments, projects, or business operations.

Rate of Return

A measure of the profitability of an investment, expressed as a percentage of the original investment.

Present Value

The present valuation of money expected in the future or cash inflow sequences, with adjustments for a predetermined rate of return.

Security's Value

The market worth or price at which a financial security, such as a bond or stock, can be bought or sold.