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

question 35

Essay

Stallbaumer 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:
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

---

Definitions:

Contingency Planning

Identifies alternative courses of action for use if and when circumstances change with time.

Tactical Plan

A short-term, detailed plan outlining how to achieve specific goals within a strategic framework, often focusing on immediate actions and resources.

Functional Plan

A strategic plan that is specific to a department or function within an organization, detailing objectives, resources, and timelines.

Strategic Plan

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.