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:

Modernization Theory

A theory suggesting that traditional societies will develop economically and socially to adopt the characteristics of industrialized societies through processes like technological innovation.

Underdeveloped Countries

describes countries with low levels of industrialization, inadequate infrastructural facilities, and a generally low standard of living.

Internal Characteristics

Traits or features that originate within an individual or entity, defining their innate qualities or attributes.

Dependency Theorists

Scholars who argue that economic disparities between nations arise from the exploitation of poorer countries by wealthier ones, leading to a state of dependency.