Hudson, Inc

question 78

Multiple Choice

Hudson, Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000, what is the amount of overapplied or underapplied overhead for the year?

• A) $10,000 overapplied
• B) $10,000 underapplied
• C) $50,000 underapplied
• D) $50,000 overapplied

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Definitions:

Ingratiation

A psychological technique involving efforts to make oneself more likable to others through flattery or the creation of goodwill.

Expert Power

Influence and authority derived from possessing extensive knowledge or expertise in a particular area.

Referent Power

Influence based on being admired or respected, allowing individuals to persuade others because of their personality, integrity, or other attractive traits.

Coercive Power

The ability to influence others' behavior by threats, punishment, or negative reinforcement.