Nexus Corporation Uses a Predetermined Overhead Rate Based on Direct

question 141

Multiple Choice

Nexus Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labor cost of $650,000. For the year, manufacturing overhead was:

• A) overapplied by $60,000.
• B) underapplied by $60,000.
• C) overapplied by $40,000.
• D) underapplied by $44,000.

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Definitions:

Climacteric

A phase in the aging process of humans, marking the transition from the reproductive phase to the non-reproductive state.

Hormonal Changes

Alterations in the levels of hormones in the body, which can affect physical and emotional health during different life stages.

Menopause

The natural decline in reproductive hormones when a woman reaches her 40s or 50s, marking the end of the menstrual cycle.

Female Orgasm

A complex sexual response involving a pleasurable peak of sexual excitement, characterized by muscle contractions in the genital area and often resulting in intense physical and emotional satisfaction.