Savannah Factory Applies Manufacturing Overhead Based on Direct Labor Cost

question 16

Multiple Choice

Savannah Factory applies manufacturing overhead based on direct labor cost.Information concerning manufacturing overhead and labor for August follows: $\begin{array}{lrr}&\text { Estimated }&\text { Actual }\\\text { Overhead cost } & \$ 174,000 & \$ 171,100 \\\text { Direct labor hours } & 5,800 & 5,900 \\\text { Direct labor cost } & \$ 87,000 & \$ 89,975\end{array}$ How much overhead should be applied in total during August?

• A)$179,950
• B)$174,000
• C)$177,000
• D)$171,100

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Definitions:

Noncomparable Data

Information that cannot be directly compared because it differs significantly in nature or measurement.

Problem Statement

A brief explanation of a problem that needs solving or a situation that requires enhancement.

Business Report

A detailed document that presents data, analyses, and conclusions related to a particular business situation or problem.

Sales Decline

Refers to a decrease in the number of goods or services sold by a business within a specific period.