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

question 206

Multiple Choice

Braam Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,500 hours. At the end of the year, actual direct labor-hours for the year were 9,700 hours, the actual manufacturing overhead for the year was $143,350, and manufacturing overhead for the year was underapplied by $18,220. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been: (Do not round your intermediate calculations.)

• A) $164,023
• B) $125,130
• C) $148,350
• D) $138,350

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Definitions:

Corpus Luteum

A temporary endocrine structure in female ovaries that is involved in the production of progesterone during the menstrual cycle.

Ovulation

The process in the female reproductive cycle where an egg is released from an ovary.

Progesterone

A steroid hormone released by the corpus luteum that stimulates the uterus to prepare for pregnancy.

Estrogen Secretion

Estrogen Secretion refers to the production and release of estrogen hormones by the ovaries, which are vital in regulating the reproductive system and secondary sexual characteristics in females.