Baken Corporation Applies Manufacturing Overhead on the Basis of Direct

question 26

Multiple Choice

Baken Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $172,140 and 3,800 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $171,000 and actual direct labor-hours were 3,880.
-The overhead for the year was:

• A) $4,764 overapplied
• B) $3,624 underapplied
• C) $4,764 underapplied
• D) $3,624 overapplied

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Definitions:

Thematic Apperception Test

A projective psychological test where individuals create stories based on ambiguous images, used to uncover underlying motives, feelings, and complexities.

Implicit Motives

These are unconscious desires and needs that influence behavior and decision-making, often differing from explicit motives that are consciously recognized.

Rational Method

The Rational Method is a systematic approach to solving problems based on logical reasoning and empirical evidence.

Empirical Method

A way of gaining knowledge by means of direct, structured observation or experiment, grounded in real-world data.