Acitelli Corporation, Which Applies Manufacturing Overhead on the Basis of Machine-Hours

question 66

Multiple Choice

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
-The overhead for the year was:

• A)$1,520 underapplied
• B)$2,520 overapplied
• C)$1,520 overapplied
• D)$2,520 underapplied

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Definitions:

Hyperpnea

Abnormally deep, rapid breathing.

Eupnea

Normal, unlabored breathing pattern.

Sphygmomanometers

Instruments used to measure blood pressure, typically consisting of a cuff, gauge, and a mechanism for inflation.