Caple Corporation Applies Manufacturing Overhead on the Basis of Machine-Hours

question 19

Multiple Choice

Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to $25,000 and actual machine-hours were 1,460. The company's predetermined overhead rate for the year was $11.90 per machine-hour.
-The applied manufacturing overhead for the year was closest to:

• A) $26,071
• B) $18,119
• C) $17,374
• D) $16,660

---

Definitions:

Ecosystem

A biological community of interacting organisms and their physical environment, considered a system through which nutrients are cycled and energy flows.

Average

A statistical measure representing the central or typical value in a set of data, commonly calculated by dividing the sum of all values by the number of values.

Humus

Organic material in the soil formed by the decomposition of leaves and other plant material by soil microorganisms, crucial for soil fertility and structure.

Partially Decomposed

A state describing organic material that has begun breaking down but has not yet fully decomposed.