Carlson Company Uses a Predetermined Rate to Apply Overhead

question 49

Multiple Choice

Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year, Carlson estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000.Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the plantwide overhead account for the year for Carlson?

• A) $249,280
• B) $246,000
• C) $240,000
• D) $264,000

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Definitions:

Quid Pro Quo

A Latin phrase meaning "something for something," which refers to a mutually beneficial exchange or transaction.

Harassment

Unwanted conduct affecting the dignity of men and women in the workplace or social environment, often involving creating an intimidating, hostile, degrading, or offensive atmosphere.

Fondle

To touch or stroke gently and affectionately.

Self-esteem

An individual's subjective evaluation of their own worth or abilities; their overall sense of personal value.