Winston Company Estimates That the Factory Overhead for the Following

question 183

Multiple Choice

Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead costs for the year were $1,375,000. Determine the over- or underapplied amount for the year.

• A) $17,500 overapplied
• B) $17,500 underapplied
• C) $118,250 overapplied
• D) $118,250 underapplied

Recognize how to interpret forecast charts for making probabilistic assessments about future values such as net profit and NPV (Net Present Value).

Grasp the concept of probability distributions (e.g., Poisson, normal, uniform, lognormal, triangular) and their application in predicting outcomes.

Learn how to utilize the Crystal Ball tool to assess the influence of assumptions on a forecast.

Understand the process of determining customer demand using Poisson distribution and modeling cancellations with Crystal Ball functions.

---

Definitions:

Mean Age

The average age of individuals in a particular group or population.

Median Age

The age that divides a population into two numerically equal groups; half the people are younger, and half are older.

Modal Age

The most frequently occurring age in a given dataset.

Display Behaviours

Observable actions or reactions, often in response to social situations, that communicate something about the individual to others.