The Following Calendar Year Information About the Tahoma Corporation Is

question 89

Essay

The following calendar year information about the Tahoma Corporation is available on December 31:
$$\begin{array} { l r } \text { Advertising expense } & \$ 28,800 \\\text { Depreciation of factory equipment } & 42,320 \\\text { Depreciation of office equipment } & 10,800 \\\text { Direct labor } & 142,600 \\\text { Factory utilities } & 35,650 \\\text { Interest expense } & 6,650 \\\text { Inventories, January 1: } & \\\quad \text { Raw materials } & 3,450 \\\quad \text { Goods in process } & 17,250 \\\quad \text { Finished goods } & 35,650 \\\text { Inventories, December 31: } & \\\quad \text { Raw materials } & 2,300 \\\quad \text { Goods in process } & 20,700 \\\quad \text { Finished goods } & 31,050 \\\text { Raw materials purchases } & 132,450 \\\text { Rent on factory building } & 41,400 \\\text { Indirect labor } & 51,750 \\\text { Sales commissions } & 16,500\end{array}$$
The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.

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Definitions:

Stepfathers

Men who marry someone with children from a previous relationship and may take on the role of a father figure to those children.

Biological Fathers

Men who have contributed genetically to the creation of a child, regardless of their relationship or involvement with the child thereafter.

Female Genital Mutilation

The practice of partially or totally removing the external genitalia of girls and young women for non-medical reasons.

Cultural Belief

The shared attitudes, values, norms, and practices that characterize a group of people or a society.