Using Machine Hours to Assign Manufacturing Overhead to a Labor

question 91

Multiple Choice

Using machine hours to assign manufacturing overhead to a labor intensive product line is likely to:

• A) Over-apply overhead to the product line.
• B) Under-apply overhead to the product line.
• C) Understate direct labor costs.
• D) Overstate direct labor costs.

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Definitions:

Prenatal Development

The sequence of advancement and expansion in the womb from fertilization to childbirth.

Allergies

Immune system reactions to a particular substance that is not harmful to most people, often manifested by sneezing, itching, or rashes.

Age of Viability

The stage of fetal development at which a fetus has a significant chance of survival outside the uterus, typically around 24 weeks gestation.

Prematurely

Happening before the normal or expected time.