Biltz Company Uses a Predetermined Overhead Rate Based on Direct

question 244

Multiple Choice

Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs.During the year,the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked.The company estimated that it would incur $525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked.
By how much was manufacturing overhead overallocated or underallocated for the year?

• A)$109,500 underallocated
• B)$57,000 overallocated
• C)$57,000 underallocated
• D)$109,500 overallocated

---

Definitions:

Stanley Milgram

An American social psychologist best known for his controversial experiment on obedience to authority conducted in the 1960s.

Critics

Individuals who evaluate or analyze works of art, literature, or performances, often providing insights or judgments.

Predictions

Statements or claims made about the future based on current evidence or past experiences.

Stanley Milgram

A psychologist known for his research on obedience, demonstrating how people are willing to follow orders from an authority figure, even to the extent of causing harm to others.