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

Distinguish between brightness, contrast, and other visual effects in PowerPoint.

Operate PowerPoint’s spelling tools efficiently.

Use handouts and WordArt effectively in presentations.

Navigate and apply PowerPoint themes and templates.

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Definitions:

After-tax Cost

The expense of an action or transaction after considering the impact of taxes.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Growth Rate

The percentage increase in a company's revenue or earnings from one period to the next, demonstrating how quickly it is expanding.

Market Price

The amount for which something can be sold on a given market at a specific point in time.