The Following Information Was Gathered for Gophers Company Assume the Cost Driver Is Direct-Labor Hours

question 148

Multiple Choice

The following information was gathered for Gophers Company: $$\begin{array} { l r } \text { Budgeted direct-labor hours } & 31,000 \\\text { Actual direct-labor hours } & 32,400 \\\text { Budgeted factory overhead } & \$ 147,250 \\\text { Actual factory overhead } & \$ 149,980\end{array}$$ Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.

• A)$2,730 underapplied
• B)$2,730 overapplied
• C)$6,450 underapplied
• D)$3,920 overapplied

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