Crinks Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 60

Multiple Choice

Crinks Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840.At the end of the year,actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840.Overhead at the end of the year was:

• A)$4,280 overapplied
• B)$9,280 overapplied
• C)$9,280 underapplied
• D)$4,280 underapplied

---

Definitions:

Perfectly Competitive

Describes a market structure where many firms offer homogeneous products, and no single buyer or seller can influence the market price.

Long-Run Equilibrium

A state in an economy or market where all factors of production are fully employed and economic forces are in balance, persisting over a long period.

MR = MC

A condition in economics where marginal revenue equals marginal cost; it's the optimal production point for firms maximizing their profit.

Monopolistically Competitive

Refers to a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.