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

question 81

Multiple Choice

The following information was gathered for Gophers Company: $\begin{array}{ll}\text { Budgeted direct-labor hours } & 8,000 \\\text { Actual dir ect-lab or hours } & 8,100 \\\text { Bud geted factory overhead } & \$ 224,000 \\\text { Actual factory overhead } & \$ 224,970\end{array}$ Assume the cost driver is direct- labor hours. The amount of over/underapplied overhead is:

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

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Definitions:

Equity

The amount of a home that an owner actually owns.

Loan Balance

The amount of money that remains to be paid on a loan, excluding interest or fees that may accumulate.

Sales Tax

A percentage paid to the government of sales on products or services.

Square Foot

A unit of area measurement equal to a square measuring one foot on each side.