Collossal Company Uses a Predetermined Rate to Apply Overhead

question 54

Multiple Choice

Collossal Company uses a predetermined rate to apply overhead. At the beginning of the year, Collossal estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000. Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead account for the year for Collossal?

• A) $249,280
• B) $246,000
• C) $240,000
• D) $264,000

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Definitions:

Sinoatrial Node

A small body of specialized muscle tissue in the heart that acts as a natural pacemaker, initiating the heart's electrical impulses.

AV Node

A part of the electrical conduction system of the heart that delays the electrical impulse from the atria, allowing the ventricles time to fill with blood.

Atrioventricular Valves

Valves between the atria and ventricles of the heart that prevent the backflow of blood.

Semilunar Valves

Heart valves located at the bases of the large arteries that exit the heart (the aorta and the pulmonary artery); they prevent blood from flowing back into the heart's ventricles after contraction.