Serena Corporation Uses Estimated Manufacturing Overhead Costs of $880,000 and Estimated

question 114

Multiple Choice

Serena Corporation uses estimated manufacturing overhead costs of $880,000 and estimated direct labor hours of 200,000 in establishing manufacturing overhead rates.Allocated manufacturing overhead was $1,012,000 and actual manufacturing overhead was $970,000.What were the number of actual direct hours worked?

• A)230,000
• B)200,000
• C)181,443
• D)208,660

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Definitions:

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied responds infinitely or extremely to a change in price.

Total Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Quantity Demanded

The specific amount of a product that consumers are willing to buy at a given price, assuming all other factors are held constant.

Price Elastic

A measure of how much the quantity demanded of a good responds to a change in the price of that good. It indicates the sensitivity of consumers to price changes.