Sirmons Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 129

Multiple Choice

Sirmons Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 70,000 labor-hours. The estimated variable manufacturing overhead was $9.93 per labor-hour and the estimated total fixed manufacturing overhead was $1,649,200. The actual labor-hours for the year turned out to be 74,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

• A)$32.22
• B)$9.93
• C)$33.49
• D)$23.56

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Definitions:

Fundamental Attribution Error

A common cognitive bias where people tend to overemphasize individual personality or dispositional factors and underestimate situational factors when explaining others' behaviors.

Relationship

An emotional or other connection between people, whether personal, professional, or familial, characterized by varying degrees of intimacy, commitment, and duration.

Active Perception

The process in which the perceiver actively engages in selecting, organizing, and interpreting stimuli.

Interpersonal Perception

The process by which people observe, interpret, and make sense of the behaviors and characteristics of others in social interactions.