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

Distinguish between dispositional and situational attributions.

Describe Kelley's covariation model of attribution.

Explain the fundamental attribution error.

Understand the role of consensus, consistency, and distinctiveness in attribution.

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Definitions:

Elasticity of Demand

A measure of how the quantity demanded of a good or service responds to a change in its price, indicating the sensitivity of consumers to price changes.

Percentage Change

A mathematical calculation that indicates how much a number has increased or decreased in percentage terms relative to its previous value.

Price Elastic

Describes how sensitive demand for a product or service is to changes in its price; high elasticity indicates significant demand change with price fluctuations.

Nondiscretionary

Pertaining to expenses that are essential and not subject to personal choice, such as food, housing, and utilities.