Brabo Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 14

Multiple Choice

Brabo Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 15,700 hours. At the end of the year, actual direct labor-hours for the year were 16,700 hours, the actual manufacturing overhead for the year was $352,960, and manufacturing overhead for the year was overapplied by $27,800. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

• A) $327,124
• B) $357,960
• C) $380,760
• D) $347,960

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Definitions:

Pessimistic

Having a negative outlook on life, expecting the worst possible outcomes in situations.

Social Environmental Factors

External factors in society and one's environment that can influence behavior, attitudes, and development.

Theory

A set of principles and ideas intended to explain facts or phenomena, providing a framework for understanding concepts.

Sensation Seeking

The pursuit of novel and intense experiences, reflecting a personality trait characterized by a desire for sensory and emotional arousal.