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

question 147

Multiple Choice

Crimp Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 15,000 hours and the total estimated manufacturing overhead was $258,000. At the end of the year, actual direct labor-hours for the year were 13,100 hours and the actual manufacturing overhead for the year was $253,000. Overhead at the end of the year was:

• A) $27,680 overapplied
• B) $32,680 overapplied
• C) $27,680 underapplied
• D) $32,680 underapplied

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Definitions:

Microscopic Examination

The analysis of small or minute objects or samples using a microscope.

Urine Specimen

A sample of urine collected for the purpose of medical testing and analysis.

Centrifuge

A device that spins containers at high speed to separate substances of different densities.

Transfusion Reactions

Adverse reactions that may occur during or after a blood transfusion, including allergic reactions, febrile responses, and more severe complications like acute hemolytic reactions.