The Following Information Was Taken from the Cost Records of the Krameer

question 42

Multiple Choice

The following information was taken from the cost records of the Krameer Company: $\begin{array}{|lr|}\hline\text { Estimated overhead } & \$ 180,000 \\\text { Actual overhead } & \$ 178,000 \\\text { Estimated direct labor hours } & 24,000 \\\text { Actual direct labor hours } & 25,000\\\hline\end{array}$
If overhead is applied based on direct labor hours,the company's overapplied or underapplied overhead was

• A) $2,000 overapplied.
• B) $2,000 underapplied.
• C) $9,500 overapplied.
• D) $9,500 underapplied.

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Definitions:

Minimax Strategy

In relating to others, we try to minimise the costs and maximise the rewards that accrue.

Maternal Deprivation

A theory that suggests the lack of an attachment figure, especially a mother, during childhood, can lead to long-term cognitive, social, and emotional difficulties.

Spitz

The name of a psychologist, René Spitz, known for his research on the effects of deprivation of emotional nurturance on infants.

Social Deficiencies

Lacks or shortcomings in one's ability to perform in social settings or maintain successful social relationships.