Beaver Company Used a Predetermined Overhead Rate Last Year of $2

question 17

Multiple Choice

Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to be worked during the year.Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred $\quad$ $\quad$ $\quad$ $ 47,000
Actual direct labour hours worked $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 24,000
What was the under- or overapplied overhead last year?

• A) $1,000 under applied.
• B) $1,000 over applied.
• C) $2,000 under applied.
• D) $3,000 over applied.

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Definitions:

1900

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Individuals or descendants of those who migrated from Germany to Russia, particularly during the 18th and 19th centuries.

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The Emperor of Russia from 1855 to 1881, known for emancipating the serfs in 1861 and implementing significant reforms.

Communist Rule

A system of government where the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people.