Yole Corporation Uses a Predetermined Overhead Rate Based on Direct

question 67

Multiple Choice

Yole Corporation uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning of the year, Yole estimated manufacturing overhead would be $100,000 and direct labour hours would be 50,000. The actual figures for the year were $120,000 for manufacturing overhead and 52,000 direct labour hours. The cost records for the year will show which of the following?

• A)$2,000 for overhead underapplied.
• B)$16,000 for overhead overapplied.
• C)$16,000 for overhead underapplied.
• D)$20,000 for overhead underapplied.
• E)$20,000 for overhead overapplied.

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