More Manufacturing Company Uses a Predetermined Overhead Rate Based on Direct

question 33

Multiple Choice

More Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, More worked 87,000 actual direct labour hours and incurred $300,000 of actual manufacturing overhead cost. More had initially estimated that it would work 85,000 direct labour hours during the year and incur $340,000 of manufacturing overhead cost. Based on the information provided, More's manufacturing overhead cost for the year was:

• A)$8,000 overapplied.
• B)$40,000 underapplied.
• C)$40,000 overapplied.
• D)$48,000 overapplied.
• E)$48,000 underapplied.

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Definitions:

Contaminated

The presence of harmful or undesired substances in materials or environments, making them unsafe or unfit for use.

Sales Performance Criteria

Standards or metrics used to evaluate and measure the effectiveness and outcomes of sales activities.

Behavioral-Based Measures

Assessment techniques that evaluate an individual's actions or behaviors, often used to assess job performance or psychological traits.

Restructuring

The act of reorganizing the legal, ownership, operational, or other structures of a company to make it more profitable or efficient.