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:

Wernicke's Area

A region of the brain that is important for language development, located in the temporal lobe on the left side of the brain.

Temporal Lobe

A region of the cerebral cortex involved in processing auditory information and is also important for memory and emotion.

Language Comprehension

The ability to understand spoken, written, or signed language through the processes of decoding, interpreting, and making sense of the messages.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, often referred to as the "master gland" because it controls the functions of many other endocrine glands.