Beta Company Uses a Predetermined Overhead Rate Based on Direct

question 145

Multiple Choice

Beta Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs.The company estimated that it would incur $600,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked.During the year,the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked.
By how much was manufacturing overhead overallocated or underallocated for the year?

• A)$18,000 underallocated
• B)$42,000 overallocated
• C)$42,000 underallocated
• D)$18,000 overallocated

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Definitions:

Distantly Related

Refers to organisms that share a common ancestor far back in the evolutionary tree, indicating a low level of genetic similarity.

Accompanying Table

A supplementary table that is provided alongside a main set of data or information to support or clarify it.

Genetic Code

The collection of guidelines that dictate how information stored in genetic material, whether DNA or RNA sequences, is converted into proteins by living organisms.

Universality

The quality of being universal; applicable or relevant to all cases, conditions, or situations.