Beaver Company Used a Predetermined Overhead Rate Last Year of $2

question 55

Multiple Choice

Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour, based on an estimate of 25,000 direct labour hours to be worked during the year. Actual costs and activity during the year were: $$\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead cost incurred } & \$ 47,000 \\\hline \text { Actual direct labour hours worked } & 24,000 \\\hline\end{array}$$ The underapplied or overapplied overhead last year was:

• A)$2,000 underapplied.
• B)$3,000 overapplied.
• C)$1,000 underapplied.
• D)$1,000 overapplied.

---

Definitions:

Bad Check

A check that cannot be processed because the issuer has insufficient funds or the account is closed.

Bank Customers

Individuals or entities that utilize the services provided by a bank, such as saving accounts, loans, and investment advice.

Credit Balances

Balances in financial accounts that represent amounts owed to others, typically indicating a surplus in accounts like liability and revenue accounts.

Bank's Records

Documentation and ledgers maintained by a bank, detailing all transactions and financial activities of the bank's accounts.