Yista Corporation Uses a Predetermined Overhead Rate Based on Direct

question 54

Multiple Choice

Yista Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $540,000. Actual direct labor-hours were 105,000. What was the overapplied or underapplied manufacturing overhead for the year?

• A)$30,000 overapplied
• B)$30,000 underapplied
• C)$4,500 overapplied
• D)$4,500 underapplied

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP.

Political Stability

The condition where a government is resilient, capable of maintaining order, and unlikely to experience sudden changes, breakdown, or violent political conflict.

Hegemony

The dominance of one group over another, often supported by legitimating norms and ideas.

Capitalist Society

A socio-economic system characterized by private ownership of resources and production means, where goods and services are produced for profit in a competitive market.