Harrell Company Uses a Predetermined Overhead Rate Based on Direct

question 153

Multiple Choice

Harrell Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at $400,000 and its direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year was $350,000 and the actual direct labor-hours incurred on jobs during the year was 90,000 hours. The manufacturing overhead for the year would be:

• A) $10,000 underapplied
• B) $10,000 overapplied
• C) $50,000 underapplied
• D) $50,000 overapplied

Analyze the role of economic profit in resource allocation and usage.

Understand the distinction between normal profit and its significance in business.

Grasp the effects of uninsurable risks on business firms.

Recognize the entrepreneurial role in economic profit generation and the functions they typically do not undertake.

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Definitions:

Classic Styles

Traditional or longstanding approaches or designs that have withstood the test of time in various fields such as fashion, architecture, or literature.

Fiedler's Contingency Theory

A leadership model proposing that effective leadership depends on the match between a leader's style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.

Task-motivated Leaders

Leaders who focus primarily on accomplishing specific goals and tasks and organizing work and teams efficiently to achieve such objectives.

Influence Tactics

Strategies or actions used to persuade or influence others to support one's objectives or interests.