The Brookstone Company Produces 9 Volt Batteries and AAA Batteries

question 155

Multiple Choice

The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours. The following data is given: $$\begin{array} { | l | l | } \hline \text { Actual Overhead } & \$ 325,000 \\\hline \text { Estimated Overhead } & \$ 350,000 \\\hline \text { Estimated Activity: } & \\\hline 9 \text { volt battery } & 100,000 \text { direct labor hours } \\\hline \text { AAA battery } & 400,000 \text { direct labor hours } \\\hline \text { Actual Activity: } & \\\hline 9 \text { volt battery } & 125,000 \text { direct labor hours } \\\hline \text { AAA battery } & 400,000 \text { direct labor hours } \\\hline \text { Units Produced: } & \\\hline 9 \text { volt battery } & 500,000 \\\hline \text { AsA battery } & 250,000 \\\hline\end{array}$$
How much was overhead over/underapplied?

• A)$25,000
• B)$17,500
• C)$42,500
• D)none of these

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Definitions:

Backstage

A term from sociology, specifically Erving Goffman's dramaturgical analysis, referring to private areas of our lives where we prepare for and recover from the public "performance" of our social roles.

Symbolic Interaction

Refers to the process by which individuals use symbols and language to interact and communicate, creating shared meanings.

Herbert Blumer

An American sociologist known for developing Symbolic Interactionism, a theory that examines how individuals create meanings through social interaction.

Gestures

Non-verbal communication actions performed with parts of the body, often the hands, to convey messages or emotions.