Meger Manufacturing Uses the Direct Labor Cost Method for Applying

question 34

Multiple Choice

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production.The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000,respectively.Actual direct labor cost and factory overhead were $1,100,000 and $825,000,respectively. What is the amount of under- or overapplied factory overhead?

• A)$25,000 overapplied
• B)$55,000 overapplied
• C)$80,000 overapplied
• D)$50,000 underapplied

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Definitions:

Cancer Mortality Rate

The number of deaths caused by cancer per unit population over a specified period, often used as an indicator of public health.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.

Regression Inference

The process of using regression analysis to make predictions or draw conclusions about the relationship between variables.

Linear Correlation

A relationship between two variables where a change in one variable is associated with a proportional change in the other.