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

question 146

Multiple Choice

The following information was gathered for Marlins Company: $$\begin{array} { l r } \text { Budgeted direct-labor hours } & 8,000 \\\text { Actual direct-labor hours } & 8,100 \\\text { Budgeted factory overhead } & \$ 224,000 \\\text { Actual factory overhead } & \$ 224,970\end{array}$$ Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.

• A)$970 underapplied
• B)$970 overapplied
• C)$1,830 underapplied
• D)$1,830 overapplied

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