If Manufacturing Overhead Is Applied on the Basis of Direct

question 103

Multiple Choice

If manufacturing overhead is applied on the basis of direct labor hours and if actual hours worked are less than anticipated, which of the following is true?

• A) Manufacturing overhead is probably overapplied
• B) Manufacturing overhead is probably underapplied
• C) Applied manufacturing overhead equals actual manufacturing overhead
• D) None of these are correct

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Definitions:

Directive Leadership

A leadership style characterized by giving clear and authoritative instructions and expectations to subordinates.

Achievement-Oriented

A focus or emphasis on the attainment of goals or specific outcomes, often marked by a high level of ambition and effort.

Production-Centred

An approach focusing primarily on the efficiency and effectiveness of a manufacturing or production process.

Work Standards

Established expectations regarding the quality and quantity of work that employees should achieve within a given timeframe.