Beckner Inc The Underapplied or Overapplied Overhead for September Is:
A)$2,350 Underapplied

question 75

Multiple Choice

Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. $\begin{array}{lr}\text { September 1, inventories: }\\\text { Materials }&\$24,000\\\text { Work-in-process (All Job X) } & 53,400 \\\text { Finished goods } & 105,600\\\text { Materials purchases }&\$157,000\\\text { Direct materials requisitioned: }\\\text { Job X } & \$5 74,000 \\\text { Job Y } &68,000 \\\text { Direct labor hours: } & \\\text { Job X } & 7,000 \\\text { Job Y } & 5,500\\\text { Labor costs incurred: }\\\text { Direct labor ( } \$ 6.00 \text { per hour) }&\$75,000\\\text { Indirect labor } & 24,200 \\\text { Factory supervisory salaries } & 11,100 \\\text { Rental costs: } &\\\text { Factory }&\$9,300\\\text { Administrative offices }&3,200\\\text { Total equipment depreciation costs: }\\\text { Factory } & \$ 10,400 \\\text { Administrative offices } & 2,800 \\\text { Indirect materials used } & \$ 17,800\end{array}$ The underapplied or overapplied overhead for September is:

• A)$2,350 underapplied.
• B)$2,350 overapplied.
• C)$950 overapplied.
• D)$950 underapplied.
• E)$1,450 underapplied.

Explain the difference between marginal social benefit (MSB) and marginal social cost (MSC).

Analyze scenarios to determine socially optimal levels of public goods and externalities.

Describe the concept of a Pigouvian subsidy and its application for external benefits.

Understand the implications of technology spillover in relation to positive externalities.

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Definitions:

SUVs

Sport Utility Vehicles, a category of motor vehicles which combine elements of road-going passenger cars with features from off-road vehicles.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of items such as gasoline, alcohol, and tobacco.

SUVs

Short for Sport Utility Vehicles, these are large cars designed for both on-road and off-road driving, offering increased space and utility.

Government

The governing body of a nation, state, or community that is responsible for making and enforcing laws.