Braam Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 79

Multiple Choice

Braam Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 11,500 hours.At the end of the year,actual direct labor-hours for the year were 9,700 hours,the actual manufacturing overhead for the year was $143,350,and manufacturing overhead for the year was underapplied by $18,220.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

• A) $164,023
• B) $125,130
• C) $148,350
• D) $138,350

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Definitions:

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link the diverse parts of an organization.

Senior Management

The top layer of leadership within an organization, responsible for strategic planning, decision-making, and guiding the company's direction.

Major Decisions

Significant choices that impact the course of an individual's or organization's path, often requiring careful thought and consideration.

Kotter's 8 Step Change Model

A process designed by John Kotter to facilitate organizational change, which includes creating urgency, forming a powerful coalition, and embedding new approaches into the culture.