Paul Company Used a Predetermined Overhead Rate During the Year

question 113

Multiple Choice

Paul Company used a predetermined overhead rate during the year just completed of $3.50 per direct labour hour,based on an estimate of 22,000 direct labour hours to be worked during the year.Actual overhead cost and activity during the year were: The underapplied or overapplied overhead for the year was:

• A) $13,000 underapplied.
• B) $10,500 overapplied.
• C) $2,500 overapplied.
• D) $2,500 underapplied.

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Definitions:

Lenient

Referring to a permissive or merciful approach, especially in the context of judgments or punishments.

Phallic Stage

A phase in Freudian psychosexual development, occurring from ages 3 to 6, where a child’s libido (sexual energy) is focused on the genital area.

Oedipus Complex

A psychoanalytic concept describing a child's feelings of desire for their opposite-sex parent and jealousy and rivalry toward their same-sex parent.

Electra Complex

A psychoanalytic theory proposing that a girl experiences psychosexual competition with her mother for her father's attention during the phallic stage of development.