If Overhead Is Applied on the Basis of Direct Labor

question 6

Multiple Choice

If overhead is applied on the basis of direct labor hours, and actual hours worked are less than budgeted, which of the following is true, assuming estimated overhead is correct?

• A) Overhead is probably overapplied.
• B) Overhead is probably underapplied.
• C) Applied overhead and actual overhead are equal.
• D) None of these is true.

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Definitions:

Pain Control

The management and reduction of pain using various strategies, including medication, physical therapy, and alternative methods.

The Joint Commission

An independent, not-for-profit organization that accredits and certifies nearly 21,000 health care organizations and programs in the United States, aiming to improve health care for the public.

Sentinel Events

Unexpected occurrences involving death or serious physical or psychological injury, or the risk thereof, which signal the need for immediate investigation and response.

Documentation Audits

The systematic review of records and documents to ensure accuracy, compliance, and quality in various settings, especially healthcare.