The Magnanimous Company Uses a Predetermined Overhead Rate of $12

question 199

Multiple Choice

The Magnanimous Company uses a predetermined overhead rate of $12 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $320,000. The overhead variance is

• A)$40,000 underapplied.
• B)$35,560 underapplied.
• C)$36,000 overapplied.
• D)none of the above.

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Definitions:

Rome

The capital city of Italy, rich in history and home to numerous archaeological and artistic treasures, pivotal in the development of Western civilization.

Cathedral of Florence

A renowned Gothic-style cathedral in Florence, Italy, known for its massive dome engineered by Filippo Brunelleschi.

Arnolfo di Cambio

A prominent Italian architect and sculptor of the late 13th to early 14th century, known for his work on the Florence Cathedral.

Architect

A professional who plans, designs, and oversees the construction of buildings, combining artistic vision with practical considerations.