Biltz Company Uses a Predetermined Overhead Rate Based on Direct

question 214

Multiple Choice

Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 136,000 direct labor hours were worked. The company estimated that it would incur $525,100 of manufacturing overhead during the year and that 150,800 direct labor hours would be worked. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)

• A)$108,720 underallocated
• B)$56,900 overallocated
• C)$56,900 underallocated
• D)$108,720 overallocated

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Definitions:

Vehicles

Machines designed for transport, including cars, trucks, motorcycles, and bicycles, capable of moving people or goods from one location to another.

Hub

The central part of a wheel where it attaches to the axle, or in a broader sense, a focal point or center of activity.

Brake Shoe

A component of a drum brake system, consisting of a curved metal piece with a high-friction material bonded to it, pressing against the drum to slow or stop the vehicle.

Bent Support

Refers to a structural component that has been deformed or damaged, potentially affecting its ability to provide stability.