Manufacturing Overhead Applied on the Basis of Direct Labor-Hours Was

question 93

Multiple Choice

Manufacturing overhead applied on the basis of direct labor-hours was $120,000, while actual manufacturing overhead incurred was $124,000 for the month of April. Which of the following is always true given the statement above?

• A) Overhead was overapplied by $4,000.
• B) Overhead was underapplied by $4,000.
• C) Actual direct labor-hours exceeded budgeted direct labor-hours.
• D) Actual direct labor-hours were less than budgeted direct labor-hours.

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Definitions:

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity supplied.

Price of Cotton

The market cost for a unit of cotton, which can fluctuate based on factors like market demand, supply conditions, weather, and global economic influences.

Cotton Shirts

Garments made from cotton fabric, known for their comfort, breathability, and versatility in fashion.

Demand for Cotton Shirts

The desire and purchase ability of consumers for cotton shirts at various prices over a period of time.