At the Beginning of the Year, Manufacturing Overhead for the Year

question 164

Multiple Choice

At the beginning of the year, manufacturing overhead for the year was estimated to be $670,700. At the end of the year, actual direct labor-hours for the year were 36,200 hours, the actual manufacturing overhead for the year was $665,700, and manufacturing overhead for the year was overapplied by $22,100. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been:

• A) 35,037 direct labor-hours
• B) 35,300 direct labor-hours
• C) 36,200 direct labor-hours
• D) 33,874 direct labor-hours

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Definitions:

Progressive Discipline

A disciplinary system that uses a range of responses to employee infractions, from minor to severe, in an attempt to correct behavior before termination.

Department Managers

Individuals responsible for overseeing the operations, personnel, and budget of a specific department within an organization.

Punitive Purpose

Actions or penalties intended to punish an individual or entity, often used in legal and disciplinary contexts to deter undesirable behavior.

Minimum Standards

The least or lowest level of quality, performance, or achievement that is considered acceptable.