Kreuzer Corporation Is Using a Predetermined Overhead Rate of $22

question 340

Multiple Choice

Kreuzer Corporation is using a predetermined overhead rate of $22.30 per machine-hour that was based on estimated total fixed manufacturing overhead of $446,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $409,000 and 18,200 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

• A) $446,000
• B) $37,000
• C) $372,190
• D) $405,860

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Definitions:

Process Focus

A management approach that prioritizes the optimization and improvement of specific business processes to enhance overall efficiency and effectiveness.

Product Focus

A facility organized around products; a product-oriented, high-volume, low-variety process.

Goods

Items that are produced for sale or use, often tangible commodities.

Intermittent Process

A production process characterized by irregular or non-continuous production runs, often used for custom jobs or products with variable demand.