Paul Company Used a Predetermined Overhead Rate During the Year

question 21

Multiple Choice

Paul Company used a predetermined overhead rate during the year just completed of $3.50 per direct labor-hour,based on an estimate of 22,000 direct labor-hours to be worked during the year.Actual overhead cost and activity during the year were: $\begin{array}{llcc} \text { Actual manufacturing overhead cost incurred } &\$90,000 \\\text {Actual direct labor-hours worked } &25,000\end{array}$
The underapplied or overapplied overhead for the year would be:

• A)$13,000 underapplied
• B)$10,500 overapplied
• C)$2,500 overapplied
• D)$2,500 underapplied

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Definitions:

Reproduction

The biological process by which new individual organisms are produced from their parents.

Age Grades

Social categorization based on age, often used in traditional societies to organize individuals into groups with similar responsibilities and rites of passage.

Age Classes

Categories or divisions in a society based on age, used to organize individuals into roles, responsibilities, and social expectations appropriate to their stages in life.

Polluting

The act of contaminating the environment with harmful substances, leading to adverse effects on ecosystems and human health.