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:

Mesoderm

The middle layer of an embryo in early development, which gives rise to muscles, bones, and circulatory and excretory systems.

Germinal Period

The initial two weeks of prenatal development after conception, characterized by rapid cell division and the beginning of cell differentiation.

Blastocyst

An early stage of embryonic development that consists of a sphere of cells surrounding a fluid-filled cavity.

Embryo

The early stage of development in multicellular organisms, in humans this phase extends from the second to the eighth week of gestation.