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:

Identifiers

Labels, names, or symbols used to uniquely identify objects, variables, or elements in a system or database.

Single-Phase

Refers to an electrical power system that uses only two conductors through which electrical current flows, providing a single, consistent alternating current (AC).

Auxiliary

Additional or secondary equipment or subsystems designed to support the main system in performing its functions.

Windings

Coils of wire in electric motors or transformers that create magnetic fields or induce voltage when electric current passes through them.