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.

---

Definitions:

Sketched

The act of drawing or outlining a design or idea quickly without much detail as a preliminary to further work.

Macro Button

A user-interface element that triggers automation of tasks in software applications, programmed through macros.

Group Shapes

A feature in graphic design software that allows multiple shapes to be combined and manipulated as a single object.

Apply Macro

The process of executing a predefined set of instructions or a macro to automate repetitive tasks in software applications.