The Following Information Has Been Made Available to You A Compute the Predetermined Overhead Rate

question 164

Essay

The following information has been made available to you.Assume that overhead is applied on the basis of direct labor hours.
$\begin{array}{ll}\text { Actual overhead } & \$ 47,400 \\\text { Estimated overhead } & \$ 48,300 \\& \\\text { Actual direct labor hours } & 8,900 \\\text { Estimated direct labor hours } & 9,200\end{array}$

a. Compute the predetermined overhead rate.
b. Compute overhead applied.
c. Compute over- or underapplied overhead (indicate amount and direction).
d. Indicate whether cost of goods sold should be increased or decreased to adjust the balance to actual costs.

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Definitions:

Skinner Box

Is a controlled environment used to observe and study the behavior of animals, especially in experiments involving operant conditioning.

Variable Ratio Schedule

A reinforcement schedule in operant conditioning where rewards are provided after an unpredictable number of responses, promoting high and steady rates of behavior.

Positive Reinforcement

A technique in behavior modification that involves providing a reward following a desired behavior to increase the likelihood of its recurrence.

Disruptive Behaviour

Actions that disturb or interrupt normal processes, events, or activities, often marked by aggression or defiance.