Gaters Incorporated Makes a Single Product--An Electrical Motor Used in Many

question 128

Essay

Gaters Incorporated makes a single product--an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
The company incurred a total of $240,080 in manufacturing overhead cost during the year.
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

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Definitions:

OAKS

An acronym that could stand for various entities or concepts, depending on context, but without specific information, a precise definition cannot be provided.

FAB

An approach highlighting how a product's specific features provide certain advantages that result in tangible benefits to the consumer, providing a different perspective on its importance.

Territorial Evaluation

The process of assessing the potential and performance of a sales territory to allocate resources effectively.

Sales Quotas

Targets set for sales professionals or teams, representing a specified number of products or services to be sold within a certain timeframe.