The Management of Pundt Corporation Would Like to Investigate the Possibility

question 20

Multiple Choice

The management of Pundt Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 15,000 machine-hours. In addition, capacity is 19,000 machine-hours and the actual level of activity for the year is 15,100 machine-hours. All of the manufacturing overhead is fixed and is $45,600 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. A number of jobs were worked on during the year, one of which was Job K41P. This job required 140 machine-hours.
-If the company bases its predetermined overhead rate on capacity, the amount of manufacturing overhead charged to the job K41P is closest to:

• A) $336.00
• B) $422.78
• C) $389.27
• D) $399.00

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Definitions:

Resistance

The act of opposing or standing against something, which can refer to physical opposition, disease immunity, or refusal to accept social norms.

Unconscious Conflicts

Internal struggles, often stemming from childhood, that reside outside of conscious awareness but influence behavior and emotions.

Sigmund Freud

As an Austrian neurologist, he was the progenitor of psychoanalysis, a therapy for mental illnesses facilitated through discussions between a patient and a psychoanalyst.

Psychological Disorders

Psychological Disorders are patterns of behavioral, cognitive, or emotional symptoms that impact multiple areas of life, leading to distress for the person affected.