Snappy Company Has a Job-Order Cost System and Uses a Predetermined

question 13

Multiple Choice

Snappy Company has a job-order cost system and uses a predetermined overhead rate based on direct Labour-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct Labour-hours were estimated at £100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of £5,000 in direct materials and £2,400 in direct Labour. The Labour rate is £6 per hour. By the end of the year, Snappy had worked a total of 45,000 direct Labour-hours and had incurred £110,250 actual manufacturing overhead cost.
-Snappy's manufacturing overhead for the year was:

• A)£10,250 underapplied.
• B)£12,500 overapplied.
• C)£12,500 underapplied.
• D)£2,250 overapplieD.

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Definitions:

Source Amnesia

The inability to remember where, when, or how one has obtained knowledge, although the fact or idea is retained.

Proactive Interference

The phenomenon where old information inhibits the ability to remember new information.

Frequent Toothbrushing

The act of brushing teeth more often than usual, typically recommended to improve dental health and prevent oral diseases.

Convincing Arguments

Statements or reasons given with the aim of persuading others to accept a particular viewpoint.