Cavy Company Estimates That the Factory Overhead for the Following

question 118

Multiple Choice

Cavy 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 40,000 hours. The machine hours for the month of April for all of the jobs were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

• A) $7,575 underapplied
• B) $35,220 underapplied
• C) $7,575 overapplied
• D) $35,220 overapplied

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Definitions:

Pulmonary Capillaries

Tiny blood vessels located within the lungs where gas exchange, including the uptake of oxygen and release of carbon dioxide, occurs.

Oxyhemoglobin-Dissociation Curve

A graph showing the relationship between the partial pressure of oxygen and the saturation of hemoglobin with oxygen.

Body Temperature

The measure of the body's ability to generate and get rid of heat, vital for maintaining metabolic processes.

Carbon Monoxide

A colorless, odorless, and toxic gas produced by incomplete combustion of carbon-containing materials.