Secrease Corporation Uses Machine-Hours as the Allocation Base for Applying

question 43

Multiple Choice

Secrease Corporation uses machine-hours as the allocation base for applying its manufacturing overhead.
$\begin{array}{|l|r|}\hline \begin{array}{l}\text { Estimated manufacturing overhead cost } \\\text { for the year }\end{array} & \$ 594,000 \\\hline \text { Capacity } & 110,000 \text { machine-hours } \\\hline\text { Estimated amount of the allocation base } \\\text { for the year }&108,000 \text { machine-hours }\\\hline \text { Amount of the allocation base for the } & 88,000 \text { machine-hours } \\\text { actual output of the year } & \\\hline \begin{array}{l}\text { Actual manufacturing overhead cost for } \\\text { the year }\end{array} & \$ 589,000 \\\hline\end{array}$ All of the company's manufacturing overhead is fixed.

- If the predetermined overhead rate is based on capacity,by how much was manufacturing overhead for the year over applied or underapplied?

• A) Manufacturing overhead underapplied $113,800
• B) Manufacturing overhead overapplied $113,800
• C) Manufacturing overhead overapplied $105,000
• D) Manufacturing overhead underapplied $105,000

---

Definitions:

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, making it a powerful tool in the study of operant conditioning.

Schedules of Reinforcement

Schedules of Reinforcement are the rules that determine how and when a behavior is reinforced in operant conditioning, critical in shaping and maintaining behaviors.

Secondary Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as conditioned reinforcer.

Primary Reinforcer

A naturally reinforcing stimulus meeting a basic biological need, such as hunger or thirst.