Contia Inc

question 97

Multiple Choice

Contia Inc.forecasts that total overhead for the current year will be $12,600,000, and total machine hours will be 300,000 hours.However, the actual overhead is $3,250,000, and the actual machine hours are 98,500 hours.If the company uses a predetermined overhead rate based on machine hours for applying overhead, the overhead will be:

• A) overapplied by $887,000.
• B) underapplied by $887,000.
• C) overapplied by $9,350,000.
• D) underapplied by $9,350,000.

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Definitions:

Conformity

Adjusting one's behavior or thinking to coincide with a group standard.

Energy Policy

Plans and actions taken by a government or organization regarding the production, distribution, and consumption of energy.

Practical Joke

A trick played on someone in order to make them look foolish or to amuse others, often involving a physical or visual deception.

Fire Department

An organization that provides firefighting services to protect the public from fire hazards and emergencies.