Karvel Corporation Uses a Predetermined Overhead Rate Based on Machine-Hours

question 101

Multiple Choice

Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.For the month of August,Karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours.Actual results for the period were manufacturing overhead costs of $290,000 and 76,000 machine-hours.As a result,Karvel would have:

• A)applied more overhead to jobs than the actual amount of overhead cost for the year.
• B)applied less overhead to jobs than the actual amount of overhead cost for the year.
• C)applied an amount of overhead to jobs that was equal to the actual amount of overhead.
• D)found it necessary to recalculate the predetermined overhead rate.

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Definitions:

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Neurotransmitter

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the act of consuming heroin, an illegal opioid drug known for its euphoric effects as well as its high potential for addiction and dependency.

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