Baka Corporation Applies Manufacturing Overhead on the Basis of Direct

question 152

Multiple Choice

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
-The applied manufacturing overhead for the year was closest to:

• A) $229,586
• B) $234,600
• C) $242,006
• D) $236,854

---

Definitions:

Compliance

Adhering to rules, standards, or laws, or the act of following orders, guidelines, or requests from others.

Extrinsic Motivation

Motivation driven by external rewards, such as money, recognition, or praise, rather than by intrinsic interest or satisfaction in the task itself.

Maximum Effort

The highest level of effort or energy someone can expend toward achieving a task or goal.

Expert Power

A form of power derived from possessing specialized knowledge or expertise that others value.