Bradbeer Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 45

Multiple Choice

Bradbeer Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,500 hours. At the end of the year, actual direct labor-hours for the year were 16,000 hours, the actual manufacturing overhead for the year was $233,000, and manufacturing overhead for the year was underapplied by $15,400. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

• A)$249,375
• B)$217,600
• C)$228,000
• D)$238,000

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Definitions:

Price of X

The amount of money required to purchase a unit of good X in the market.

Utility Function

A mathematical model in economics that represents how different goods or outcomes give varying levels of satisfaction or happiness to an individual.

Price of Leather Jackets

The price of leather jackets refers to the amount of money required to purchase a leather jacket, which may vary based on quality, brand, and market.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices.