Use the Following Information to Answer Questions

question 105

Multiple Choice

Use the following information to answer questions

A company expected its annual overhead costs to be $750,000 and machine hours to equal 100,000 hours. Actual overhead was $745,000, and actual machine hours totalled 97,000 hours.

-How much overhead was over or under applied?

• A)$17,500 under applied
• B)$22,500 under applied
• C)$23,000 over-applied
• D)$4,810 under applied

---

Definitions:

Restructuring

Restructuring involves modifying the structure or operations of a company, often including changes in financial policies, organizational setup, or business strategy, aimed at increasing profitability or addressing financial challenges.

Market Value

The estimated amount for which an asset or liability should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently, and without compulsion.

Required Rates Of Return

Required rates of return are the minimum returns investors expect to receive from an investment to compensate for its perceived risk.

Bondholders

Investors or entities that hold debt securities issued by corporations or governments, entitling them to receive a specified amount of interest and principal repayment.