Lopar Company Uses a Predetermined Overhead Rate Based on Direct

question 89

Multiple Choice

Lopar Company uses a predetermined overhead rate based on direct labor dollars. Lopar Company estimated that its 2010 overhead would total $938,000 and that 2010 direct labor costs would be $670,000. During 2010, actual overhead costs were $960,000, and actual direct labor costs were $700,000. By how much was Lopar's overhead over- or underapplied?

• A) $20,000 overapplied
• B) $20,000 underapplied
• C) $18,000 overapplied
• D) $10,000 underapplied

---

Definitions:

Gender Dysphoria

A state in which there is discord between an individual's designated or biological gender and the gender they perceive themselves to be.

Sex-reassignment Surgery

Medical procedures that change one's physical sex to match their gender identity.

Hormonal Therapy

Treatment that involves administering hormones to correct or modify a patient's hormonal levels, often used in conditions like menopause or certain cancers.

Pedophilic Disorder

A psychiatric disorder characterized by an adult's sexual attraction to prepubescent children.