Beaver Company Used a Predetermined Overhead Rate Last Year of $2

question 59

Multiple Choice

Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to be worked during the year.Actual costs and activity during the year were:
What was the under- or overapplied overhead last year?

• A) $1,000 underapplied.
• B) $1,000 overapplied.
• C) $2,000 underapplied.
• D) $3,000 overapplieD. (24,000@ $2)- 47,000 = $1,000 overapplied

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Definitions:

Locus of Control

A psychological concept referring to an individual's belief about how much control they have over the outcomes of events in their lives.

Satisfaction

A measure of how products or services meet or surpass customer expectation.

Postpurchase Cognitive Dissonance

The psychological conflict or anxiety that consumers may experience after making a difficult purchase decision, often involving doubt about the purchase.

Cognitive Bias

is a systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.