Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was:
A. $6,840 overapplied
B. $1,840 underapplied
C. $6,840 underapplied
D. $1,840 overapplied
Answer: B
You might also like to view...
Which aspect of supervision ensures that the interviewers strictly follow the sampling plan rather than select sampling units based on convenience or accessibility?
A) quality control and editing B) control of cheating C) central office control D) sampling control
Conducting post completion audits to determine if capital investment goals were achieved falls under which stage of the management process?
A) Planning B) Performing C) Evaluating D) Communicating
Which of the following is/are not true concerning pension plans?
a. The plan administrator serves in a fiduciary capacity for the benefit of employees. b. The employer cannot access assets in the pension plan except under specific conditions that vary, as a matter of pension law, by jurisdiction. c. The employer does not consolidate the assets and liabilities of the pension plan with its own assets and liabilities. d. The total amount of cash that the employer contributes to the pension plan over time is never the total amount of pension expense that the employer must recognize in measuring net income. e. none of the above
The typical benefit formula for a defined benefit plan takes into account the employee's
a. length of service, only. b. salary, only. c. length of service and salary. d. marital status, only. e. length of service, salary, and marital status.