Krier Corporation Uses a Predetermined Overhead Rate That Was Based

question 342

Multiple Choice

Krier Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $738,000 and 30,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $792,000 and 31,500 total direct labor-hours during the period.The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $831,600
• B) $54,000
• C) $774,900
• D) $738,000

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Definitions:

Semiannual Compounding

Interest calculation method where the interest is added to the principal twice a year, leading to compound interest growth.

Effective Rate

The equivalent annual interest rate when compounding at intervals different from annually. It reflects the total amount of interest paid or earned over a year.

Interest

Interest is the charge for borrowing money, typically expressed as an annual percentage rate.

Effective Rate

The actual interest rate on an investment or loan, considering the compounding of interest at specific intervals within a given time period.