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

question 52

Multiple Choice

Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,900 hours and the total estimated manufacturing overhead was $341,890. At the end of the year, actual direct labor-hours for the year were 16,700 hours and the actual manufacturing overhead for the year was $336,890. Overhead at the end of the year was:

• A)$22,920 underapplied
• B)$17,920 overapplied
• C)$17,920 underapplied
• D)$22,920 overapplied

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Definitions:

Negative Aspects

The disadvantages or harmful effects associated with a situation, decision, or action.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

Homogeneous Culture

A society or group where members share similar norms, values, customs, and traditions, making it relatively uniform in terms of culture.

Worldwide Culture

The global diffusion and mixing of cultures through processes like globalization, resulting in shared behaviors, values, and norms across societies.