Tarot Company Has a Predetermined Overhead Rate of $6 Per

question 126

Multiple Choice

Tarot Company has a predetermined overhead rate of $6 per direct labor hour. Last year the company incurred $156,600 of actual manufacturing overhead cost and the account was $12,600 underapplied. How many direct labor hours were worked during the year?

• A)24,000 direct labor hours
• B)25,000 direct labor hours
• C)26,000 direct labor hours
• D)28,200 direct labor hours

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Definitions:

Action Identification Theory

A psychological framework positing that how individuals conceive their actions, ranging from low-level specifics to high-level outcomes, influences their execution and perception of these actions.

Abstract Goal

An aim or objective that is not concrete or tangible but rather conceptual or theoretical in nature.

Concrete

Relating to tangible objects or specific things rather than ideas or abstract qualities.

Construal Level Theory

A psychological theory suggesting that the distance (temporal, spatial, social, or hypothetical) from an event affects our thinking about it, with more distant events considered in more abstract terms.