Figure 4-6 Cabrini Company Produces Two Products: Toy Trucks and Toy

question 125

Multiple Choice

Figure 4-6 Cabrini Company produces two products: toy trucks and toy cars.They use departmental overhead rates for the two production departments: molding and finishing.Molding uses machine hours to assign overhead and Finishing uses direct labor hours.50,000 trucks and 250,000 cars are produced.Please find the following data:

-Refer to Figure 4-6.How much was overhead over or underapplied?

• A) $14,250
• B) $10,000
• C) $ 4,250
• D) none of these

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Definitions:

BMWs

Refers to vehicles manufactured by Bayerische Motoren Werke AG, a German multinational company known for producing luxury vehicles and motorcycles.

Utility Function

A mathematical representation of a consumer's preference ranking for bundles of goods, showing the level of satisfaction derived from each bundle.

Cow Feed

A type of animal feed specifically formulated to meet the nutritional needs of cows.

Consumption

The act of using up goods and services to meet personal or collective needs or desires, typically measured within an economy over a period.