Dukes Corporation Used a Predetermined Overhead Rate This Year of $2

question 12

Multiple Choice

Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour,based on an estimate of 20,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were:
The overapplied or underapplied manufacturing for the year was:

• A) $1,000 underapplied
• B) $1,000 overapplied
• C) $3,000 underapplied
• D) $3,000 overapplied

---

Definitions:

Market Allocation

A method of distributing goods and services among buyers and sellers wherein prices are determined by supply and demand forces in the market.

Regulatory Agencies

Governmental bodies responsible for overseeing, implementing, and enforcing laws and regulations within specific sectors.

Secondary Effects

The indirect impact of an event or policy that may not be easily and immediately observable. In the area of policy, these effects are often both unintended and overlooked.

Future Crises

Potential, unforeseen events that could lead to severe economic, social, or environmental problems.