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

---

Definitions:

Inner-City Cultures

The traditions, behaviors, and activities characteristic of communities living in densely populated urban environments.

Observer Techniques

Methods used for collecting data by watching subjects in their natural environment without interference, often utilized in social sciences and user research.

Inspiration Phase

The initial stage in the creative process where an individual or group becomes stimulated to pursue a new idea or project.

Observation

The action of closely monitoring the behavior and activities of users/potential customers in their own environment.