Carlo Company Uses a Predetermined Overhead Rate Based on Direct

question 55

Multiple Choice

Carlo Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.The company estimated manufacturing overhead at $255,000 for the year and direct labour-hours at 100,000 hours.Actual manufacturing overhead costs incurred during the year totalled $270,000.Actual direct labour hours were 105,000.What was the overapplied or underapplied overhead for the year?

• A) $2,250 overapplied.
• B) $2,250 underapplied.
• C) $15,000 overapplied.
• D) $15,000 underapplied.

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Definitions:

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel towards their workplace.

Accidents

Unplanned events that result in injury, damage, or harm in some capacity, often prompting investigations to prevent future occurrences.

Illnesses

Medical conditions or diseases that impact a person's health, potentially causing symptoms or discomfort.

Inadequate Recognition

A situation where individuals or their contributions are not duly acknowledged or appreciated, which can lead to dissatisfaction and demotivation.