Forbes Corporation Uses a Predetermined Overhead Rate Based on Direct

question 59

Multiple Choice

Forbes Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show:

• A) overapplied manufacturing overhead of $300
• B) overapplied manufacturing overhead of $1,500
• C) underapplied manufacturing overhead of $1,500
• D) underapplied manufacturing overhead of $300

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Definitions:

Priming

The exposure to one stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Episodic Memory

a type of long-term memory that involves the recollection of specific events, situations, and experiences.

Implicit Memory

A type of memory in which previous experiences aid in the performance of a task without conscious awareness of these previous experiences.

Declarative Memory

A type of long-term memory that involves the ability to recall factual information, such as names, dates, and concepts.