Lakeside Company Estimated Manufacturing Overhead Costs for 2014 at $378,000

question 25

Multiple Choice

Lakeside Company estimated manufacturing overhead costs for 2014 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for 2014 totaled 195,000. The manufacturing overhead account contains debit entries totaling $391,500. The manufacturing overhead for 2014 was: (Round your intermediate calculations to one decimal place)

• A)$31,500 underallocated.
• B)$31,500 overallocated.
• C)$18,000 underallocated.
• D)$18,000 overallocated.

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Definitions:

Swim Bladders

Air-filled sacs in some fish that help control buoyancy and maintain stability in the water.

Ventilation

The process of moving air in and out of the lungs to exchange oxygen and carbon dioxide.

Diaphragm

A muscle that separates the chest cavity from the abdominal cavity, playing a major role in breathing.

Inhalation

The act of breathing in, which allows air or other substances to enter the lungs.