Carter Corporation Applies Manufacturing Overhead on the Basis of Machine-Hours

question 133

Multiple Choice

Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour.
-The overhead for the year was:

• A)$5,198 overapplied
• B)$3,952 underapplied
• C)$3,952 overapplied
• D)$5,198 underapplied

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Definitions:

Sentiment

A complex combination of feelings and opinions as a response to a situation, person, or object.

Affect

A term used in psychology to describe the experience of feeling or emotion.

Emotion

A complex psychological state that involves an experiential, physiological, and behavioral response to a personally significant matter.

Mood

A temporary emotional state that can influence perceptions, behavior, and well-being.