During the Year,Paul Company Used a Predetermined Overhead Rate of $3.50

question 73

Multiple Choice

During the year,Paul Company used a predetermined overhead rate of $3.50 per direct labour hour,based on an estimate of 22,000 direct labour hours to be worked during the year.Actual overhead cost and activity during the year were:
$\begin{array}{|l|l|}\hline \begin{array}{l}\text { Actual manufacturing overhead cost } \\\text { incurred }\end{array} & \$ 90,000 \\\hline \text { Actual direct labour hours worked } & 25,000 \\\hline\end{array}$
What was the under- or overapplied overhead for the year?

• A) $2,500 overapplied.
• B) $2,500 underapplied.
• C) $10,500 overapplied.
• D) $13,000 underapplied.

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Definitions:

Expected Outcomes

The anticipated results or impacts of a project, initiative, or action, often based on objectives or planned interventions.

Decisions Made

The act of reaching a conclusion or making up one's mind about something.

Process Check

An evaluation or review of the procedures and methods used in an operation or project to ensure they are effective and efficient.

Evaluation Stage

A phase in a process where the outcomes or results are critically assessed for their effectiveness, quality, or value.