Golden Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 9

Multiple Choice

Golden Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,600 hours. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and manufacturing overhead for the year was underapplied by $23,440. The estimated manufacturing overhead at the beginning of the year used to calculate the predetermined overhead rate must have been:

• A) $501,920.
• B) $531,445.
• C) $483,480.
• D) $511,920.

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Definitions:

Central Banks

Major financial institutions that manage a country's currency supply, interest rates, and serve as a lender of last resort to the banking sector.

Exchange Rates

The price at which one currency can be exchanged for another currency.

Fluctuate

To change or cause to change in level, strength, or value frequently, without steadiness or consistency.

Foreign Exchange

The swapping of one type of currency for a different one or changing one type of currency into another.