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

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Definitions:

Retirement Account

A financial arrangement designed to replace employment income upon retirement, often offering tax benefits to encourage saving for the retirement years.

Retire

The process of leaving one's job and ceasing to work, typically due to age or health reasons.

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of borrowing money or the return on invested funds.

Bond

A fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.