Scottso Corporation Applies Overhead Using a Normal Costing Approach Based

question 60

Multiple Choice

Scottso Corporation applies overhead using a normal costing approach based upon machine-hours.Budgeted factory overhead was $232,750,budgeted machine-hours were 17,500.Actual factory overhead was $227,830,actual machine-hours were 16,150.How much is the over- or underapplied overhead?

• A)$13,035 overapplied
• B)$13,035 underapplied
• C)$4,920 overapplied
• D)$4,920 underapplied

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Definitions:

Employee Morale

The overall outlook, satisfaction, and confidence that employees feel towards their workplace.

Incentive Plan

A program designed to motivate and reward employees for meeting or exceeding performance and productivity targets.

Company's Success

A company's success is measured by its ability to achieve its goals, financial prosperity, and the satisfaction of its stakeholders.

Exercise Price

The specified price at which an option contract can be executed, commonly used in the context of stock option plans.