Kryzski Company Has a Predetermined Overhead Rate of $6 Per

question 47

Multiple Choice

Kryzski Company has a predetermined overhead rate of $6 per direct labour hour.Last year the company incurred $156,600 of actual manufacturing overhead cost and the account was $12,600 underapplied.How many direct labour hours were worked during the year?

• A)24,000
• B)25,000
• C)26,000
• D)28,200

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Definitions:

Debt-Related Restrictions

These are covenants or conditions included in loan agreements that limit certain actions of the borrower to protect the lender.

Tax-Reduction

Strategies or actions taken to minimize the amount of taxes owed by an individual or corporation.

Asset Cost

The total amount invested to acquire, produce, or improve a tangible or intangible asset, utilized for accounting and tax purposes.

Lease-Purchase Analysis

A financial evaluation technique used to determine the most cost-effective option between leasing an asset and purchasing it outright.