Igor IncHad a Predetermined Overhead Rate of $2 Per Direct Labour

question 56

Multiple Choice

Igor Inc.had a predetermined overhead rate of $2 per direct labour hour.The direct labour hours were estimated to be 25,000.The actual manufacturing overhead incurred was $47,000,and 24,000 actual direct labour hours were worked.How much was overhead either overapplied or underapplied last year?

• A)$1,000 underapplied
• B)$1,000 overapplied
• C)$2,000 underapplied
• D)$3,000 overapplied

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Definitions:

William Lloyd Garrison

An American abolitionist writer and publisher who campaigned against slavery in the United States during the 19th century.

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A resolution to a conflict or problem through diplomatic, governmental, or political means rather than by force or warfare.

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A political party in the United States active in the mid-19th century, known for its opposition to the policies of President Andrew Jackson and its support for modernization and economic protectionism.

American Anti-Slavery Society

An abolitionist society founded in 1833 to advocate for the immediate emancipation and racial equality for African Americans.