Crich Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 121

Multiple Choice

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Do not round your intermediate calculations.)

• A) $6,840 overapplied
• B) $6,840 underapplied
• C) $1,840 underapplied
• D) $1,840 overapplied

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Definitions:

Weight

A measure of the heaviness of an object, often quantified in units such as pounds or kilograms.

Multiple Selves

The concept that an individual possesses different versions of themselves, each of which may be presented in different contexts.

Conservative Businesswoman

A woman who adopts traditional approaches and cautious practices in business activities, often prioritizing stability and long-term value.

Secret Identities

Alternate personas kept hidden from the general public, often used in narratives to protect characters with dual lives, like superheroes.