The Winston Company Estimates That the Factory Overhead for the Following

question 59

Multiple Choice

The Winston Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 50,000 hours.The total machine hours for the year were 54,300.The actual factory overhead for the year were $1,375,000.Determine the over- or underapplied amount for the year.

• A) $17,500 overapplied
• B) $17,500 underapplied
• C) $118,250 overapplied
• D) $118,250 underapplied

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Definitions:

Availability Heuristic

A prediction about the probability of an event based on the ease of recalling or imagining similar events.

Sternberg's Triarchic

A theory of intelligence that proposes three fundamental aspects: analytical, creative, and practical intelligence.

Gardner's Theory

A theory of multiple intelligences proposed by Howard Gardner, suggesting that individuals have eight or more relatively autonomous intelligences.

Cognitive Psychology

Cognitive psychology is the branch of psychology that studies mental processes including how people think, perceive, remember, and learn.