Carlo Company Uses a Predetermined Overhead Rate Based on Direct

question 24

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.

---

Definitions:

Alcohol Sensitivity

The degree to which an individual reacts to the consumption of alcohol, which can vary greatly among different people.

Metabolism

The set of life-sustaining chemical reactions in organisms that enable the conversion of food to energy, the construction of proteins and nucleic acids, and the elimination of nitrogenous wastes.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to the diagnosis of mental disorders.

Depression

A mental disorder characterized by persistent sadness, loss of interest in activities, and the inability to experience pleasure, affecting one's thoughts, behavior, feelings, and sense of well-being.