The following information is provided for the year: If normal costing is used, the amount of overhead applied for the year is
A) $568,750.00.
B) $441,031.25.
C) $481,250.00.
D) $525,000.00.

Question

The following information is provided for the year:  If normal costing is used, the amount of overhead applied for the year is
A) $568,750.00. 
B) $441,031.25. 
C) $481,250.00. 
D) $525,000.00.

Quizplus · Accepted Answer

The given information is not sufficient to determine the amount of overhead applied for the year using normal costing. Normal costing requires the predetermined overhead rate (POHR) to be calculated, which is based on estimated total overhead and estimated activity level. Without this information, it is impossible to determine the amount of overhead applied for the year.

The Following Information Is Provided for the Year: If