Forbes Corporation Uses a Predetermined Overhead Rate Based on Direct

question 59

Multiple Choice

Forbes Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show:

• A) overapplied manufacturing overhead of $300
• B) overapplied manufacturing overhead of $1,500
• C) underapplied manufacturing overhead of $1,500
• D) underapplied manufacturing overhead of $300

---

Definitions:

Registered Bonds

Bonds that are recorded in the name of the holder on the issuing company's books, ensuring that only the registered holder receives interest payments.

Term Bonds

Bonds that have a fixed maturity date on which the principal amount of the bond is due to be paid.