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:

Black Box

The unobservable, internal process taking place within the mind of the prospect as he or she reaches a decision whether or not to buy.

Product Advantage

The unique benefits or features that make a product superior to competing offerings in the eyes of the target market.

Individual Factors

Personal characteristics or traits that affect consumer behavior, including age, income level, education, and personal preferences.

Organizational Buying

Organizational buying refers to the decision-making process and purchase activities undertaken by formal organizations to acquire products and services for their own use or production.