Figure 5-1

question 150

Multiple Choice

Figure 5-1. Morrow Company applies overhead based on direct labor hours.At the beginning of the year,Morrow estimates overhead to be $620,000,machine hours to be 180,000,and direct labor hours to be 40,000.During February,Morrow has 4,200 direct labor hours and 8,000 machine hours.
Refer to Figure 5-1.If the actual overhead for February is $64,700,what is the overhead variance and is it overapplied or underapplied?

• A)$400 underapplied
• B)$200 overapplied
• C)$1,000 underapplied
• D)$400 overapplied
• E)$600 overapplied

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Definitions:

Jeopardy

A situation involving exposure to danger or risk, often used in the context of legal vulnerability or the potential loss of something valuable.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Job-relevant

Criteria or information that is directly pertinent to the performance of a specific job role.

Equal Employment Opportunity

A principle that ensures all individuals have the same chance for employment, regardless of race, color, religion, sex, or national origin.