The Overhead Budget, Based on a Budgeted Volume of 100

question 55

Multiple Choice

The overhead budget, based on a budgeted volume of 100 000 direct labour hours, was $325 000. Actual overhead costs amounted to $340 000 and actual direct labour hours were 106 000. By how much was overhead under or overapplied?

• A) $4 500 overapplied
• B) $4 500 underapplied
• C) $15 000 overapplied
• D) $15 000 underapplied

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Definitions:

Organizational Socialization

The process through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members.

Socialization Adjustment Process

The process through which individuals learn and adapt to the norms, values, behaviors, and social skills necessary for integration into a new social group or culture.

Organizational Culture

The set of shared values, beliefs, behaviors, and practices that influences the way employees behave within an organization.

Artifacts

Physical objects produced or used by humans, often studied to understand historical, cultural, or social contexts.