Wert Corporation Uses a Predetermined Overhead Rate Based on Direct

question 24

Multiple Choice

Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs.Last year,the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours.The company's direct labor wage rate is $12 per hour.Actual manufacturing overhead amounted to $1,240,000,with actual direct labor cost of $650,000.For the year,manufacturing overhead was:

• A)overapplied by $60,000
• B)underapplied by $60,000
• C)overapplied by $40,000
• D)underapplied by $44,000

---

Definitions:

Tuskegee Syphilis Study

A notorious and unethical study conducted by the U.S. Public Health Service on African American men in Tuskegee, Alabama, to study the progression of untreated syphilis.

African-American Men

A demographic group referring to men who identify as Black or African American, often the subject of discussions around health disparities and social challenges in the United States.

Untreated Syphilis

A syphilis infection that has not received medical treatment, potentially leading to serious health consequences, including end-stage syphilis.

Health Care System

An organized network of institutions, resources, and healthcare providers focused on delivering healthcare services to meet the health needs of populations.