Harvard Binding Had Budgeted Direct Labor Costs of $870,000 and Budgeted

question 9

Multiple Choice

Harvard Binding had budgeted direct labor costs of $870,000 and budgeted manufacturing overhead of $304,500.It allocates manufacturing overhead based on direct labor costs.If actual direct labor costs were $840,000 and actual manufacturing overhead costs were $286,000, identify the true statement.

• A)The company applied more overhead than it incurred.
• B)The company estimated less overhead than it applied.
• C)The company incurred more overhead than it estimated.
• D)The company estimated less overhead than it incurred.

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Definitions:

Power

The ability or capacity to influence or control the behavior of others, often backed by authority or force.

Potential

The inherent ability or capacity for growth, development, or coming into being.

Behavior

The actions or reactions of individuals or groups in response to external or internal stimuli.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit individuals or groups.