Beta Company Uses a Predetermined Overhead Rate Based on Machine

question 118

Multiple Choice

Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,300 of manufacturing overhead during the year and that 250,100 machine hours would be used. During the year, the company actually incurred manufacturing overhead costs of $582,400 and 240,200 machine hours were used. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

• A)$5920 overallocated
• B)$5920 undererallocated
• C)$17,900 underallocated
• D)$17,900 overallocated

---

Definitions:

United States

A country located primarily in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.

Savings Rate

The proportion of disposable income that is saved by an individual or household instead of being spent.

Disposable Incomes

The financial sum available for households to spend and put aside for savings after income tax reductions.

Productivity Growth

An improvement in production effectiveness, characterized by the quantity of goods and services generated per unit of labor, capital, or other resources.