Filippucci Company Used a Budgeted Indirect-Cost Rate for Its Manufacturing $\begin{array}{lr}\text { Work-in-Process } & \$ 10,000 \\\text { Finished Goods } & 20,000 \\\text { Cost of Goods Sold } & 170,000\end{array}$

question 172

Multiple Choice

Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000) .
Ending balances in the relevant accounts are:
$\begin{array}{lr}\text { Work-in-Process } & \$ 10,000 \\\text { Finished Goods } & 20,000 \\\text { Cost of Goods Sold } & 170,000\end{array}$
-Legal Advisory Inc.,employs 12 full-time attorneys and 10 paraprofessionals.Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours.Following is information for 2014: $\begin{array}{lcc}&\text { Budget }&\text { actual }\\\text { Indirect costs } & \$ 270,000 & \$ 300,000 \\\text { Annual salary of each attorney } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each paraprofessional } & \$ 29,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$ When using a normal costing system,year-end accounting records will show that indirect costs are ________.

• A) perfectly allocated
• B) underallocated
• C) within budget
• D) overallocated

Acknowledge the impacts of aggregate planning strategies on workforce morale and organization supply chain.

Understand the implications of not correctly matching demand and supply in terms of perishable inventory and unused capacity.

Understand key principles and strategies of aggregate planning.

Recognize various models and approaches used in aggregate planning.

---

Definitions:

Disadvantage

Disadvantage refers to a condition or situation that unfavorably affects someone or something, putting them at a lesser position compared to others.

Self-Handicapping

A cognitive strategy where individuals avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Situational

Pertaining to or influenced by the external environment, circumstances, or conditions rather than by individual traits or motivations.

Personality Characteristics

Traits and qualities that describe an individual's consistent behaviors, thoughts, and feelings.