Dukes Company Used a Predetermined Overhead Rate This Year of $2

question 48

Multiple Choice

Dukes Company used a predetermined overhead rate this year of $2 per direct labor-hour,based on an estimate of 20,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: The underapplied or overapplied overhead for the year was:

• A)$1,000 underapplied
• B)$1,000 overapplied
• C)$3,000 underapplied
• D)$3,000 overapplied

---

Definitions:

Money-Supply Curve

A graphical representation showing the relationship between the quantity of money in an economy and its price or interest rate.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Equilibrium

A situation in which the market price has reached the level at which quantity supplied equals quantity demanded.

Money Demanded

The total amount of money that households and businesses want to hold at a given time, often influenced by interest rates, income levels, and the economic outlook.