The Cavy Company Estimates That the Factory Overhead for the Following

question 1

Multiple Choice

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 40,000 hours.The machine hours for the month of April for all of the jobs were 4,780.If the actual factory overhead totaled $141,800,determine the over- or underapplied amount for the month.

• A) $7,575 underapplied
• B) $35,220 underapplied
• C) $7,575 overapplied
• D) $35,220 overapplied

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Definitions:

Phase Angle

The difference in phase between the inputs and outputs of a system, often measured in degrees or radians.

Parallel Circuit

An electrical circuit in which components are connected so that the same voltage is applied to each component, but the total current is divided among the components.

Inductive Reactance

The opposition that an inductor presents to alternating current, due to its inductance, proportional to the frequency of the current.

Confederation Congress

The governing body of the United States under the Articles of Confederation, serving from 1781 to 1789, before the adoption of the Constitution.