Sullivan Company Uses a Predetermined Overhead Rate Based on Machine

question 23

Multiple Choice

Sullivan Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $500,000 of manufacturing overhead during the year and that 200,000 machine hours would be used. During the year, the company actually incurred manufacturing overhead costs of $590,000 and 220,000 machine hours were used.

By how much was manufacturing overhead overallocated or underallocated for the year?

• A) $40,000 underallocated
• B) $40,000 overallocated
• C) $90,000 underallocated
• D) $90,000 overallocated

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Definitions:

Sources of Stress

Various factors or situations that can cause mental or emotional strain and tension in individuals.

Manage the Stress

The practice of employing techniques and strategies to regulate and mitigate stress levels for the purpose of improving one's overall well-being.

Consequences

The outcomes or results that naturally follow from a specific action or set of conditions, either positive or negative.

Role Conflicts

Occurs when there are incompatible demands placed upon a person such that compliance with both would be difficult.