Fortune Company Uses a Predetermined Overhead Rate Based on Direct

question 21

Multiple Choice

Fortune Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.The cost records for October will show: $$\begin{array} { | l | c | } \hline \text { On October 1, the estimates for the month were: } & \\\hline \text { Manufacturing overhead } & \$ 17,000 \\\hline \text { Direct labor-hours } & 13,600 \\\hline \text { During october, the actual results were: } & \\\hline \text { Manufacturing overhead } & \$ 18,500 \\\hline \text { Direct labor-hours } & 12,000 \\\hline\end{array}$$

• A) Overapplied overhead of $1,500.
• B) Underapplied overhead of $1,500.
• C) Overapplied overhead of $3,500.
• D) Underapplied overhead of $3,500.

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Definitions:

Pre-employment Assessments

Tests and evaluations used by employers to screen candidates before hiring to determine if they are suitable for the job.

Job Offer

A proposal of employment from an employer to a potential employee, detailing the terms of the position.

Group Interview

A group interview is a recruitment process where multiple candidates are interviewed simultaneously, allowing for the assessment of their interaction and teamwork skills.

Organization's Operations

The day-to-day activities and processes that a business or organization engages in to function and achieve its objectives.