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

question 149

Multiple Choice

Dagnon Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $299,130. At the end of the year, actual direct labor-hours for the year were 17,400 hours, manufacturing overhead for the year was overapplied by $13,850, and the actual manufacturing overhead was $294,130. The predetermined overhead rate for the year must have been closest to:

• A) $17.70
• B) $17.19
• C) $18.22
• D) $16.90

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Definitions:

Myers-Briggs Type Indicator

A personality assessment that categorizes individuals into 16 distinct personality types based on preferences in perception and judgment.

Corporations

Large companies or groups of companies authorized to act as a single entity and recognized as such in law.

Lexical Hypothesis

suggests that all important personality traits are embedded in our language over time, implying that by studying language, one can derive significant personality dimensions.

Personality Traits

Enduring characteristics or patterns of behavior and inner experience that are consistent over time and across situations.