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

---

Definitions:

Everyday Class Consciousness

Awareness of one’s own social status and that of others.

Wealthier Member

Refers to an individual or entity within a group or society possessing significantly more financial resources or wealth compared to the other members.

Cultural Capital

The non-financial social assets that promote social mobility beyond economic means, such as education, intellect, style of speech, dress, or physical appearance.

Pierre Bourdieu

A French sociologist and philosopher known for his concepts of habitus, cultural capital, and social capital which explain the dynamics of power and inequality in society.