Grey, Inc, Uses a Predetermined Rate to Apply Overhead

question 11

Multiple Choice

Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey estimated its overhead costs at $220,000, direct labor hours at 55,000, and machine hours at 20,000. Actual overhead costs incurred were $233,250, actual direct labor hours were 62,000, and actual machine hours were 15,000.
If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead account for the year for Grey?

• A)$240,000
• B)$135,000
• C)$215,000
• D)$165,000

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Definitions:

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The practice of training people to obey rules or a code of behavior, often using punishment to correct disobedience.

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An educational or training method in which participants simulate characters or scenarios to explore behaviors, skills, or concepts in a controlled environment.

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The actions or reactions of an individual, group, or system in response to external or internal stimuli.