Kimble Company Applies Overhead on the Basis of Machine Hours

question 99

Multiple Choice

Kimble Company applies overhead on the basis of machine hours. Given the following data compute overhead applied and the under- or overapplication of overhead for the period: 11eb1392_1b8d_7390_8021_e3debd3d7d66

• A) $1560000 applied and $15000 overapplied
• B) $1600000 applied and $15000 overapplied
• C) $1560000 applied and $15000 underapplied
• D) $1575000 applied and neither under-nor overapplied

---

Definitions:

Myth Of The "fixed Pie"

A misconception that in negotiations, the available resources or benefits are limited and cannot be expanded, leading to a win-lose situation.

Distributive Assumption

In decision-making and economic theory, the assumption concerning how resources or wealth are distributed among members of a society.

Gaining Party

The entity in a transaction or situation that achieves an advantage or benefit.

Non-rational Escalation

The phenomenon where individuals or organizations continue to invest in a decision despite evidence of its ineffectiveness, often due to emotional or psychological commitments.