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

question 47

Multiple Choice

The following information was gathered for Badgers Company: $\begin{array}{ll}\text { Budgeted dir ect-labor hours } & 31,000 \\\text { Actual dir ect- lab or hours } & 32,400 \\\text { Budgeted factory overhead } & \$ 147,250 \\\text { Actual factory overhead } & \$ 149,980\end{array}$ Assume the cost driver is direct- labor hours. The amount of over/underapplied overhead is:

• A) $3,920 overapplied
• B) $2,730 overapplied
• C) $6,450 underapplied
• D) $2,730 underapplied

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Definitions:

Quality Management Process

A systematic approach focused on meeting customer requirements and enhancing their satisfaction through continuous improvement of operational processes.

Operational Efficiency

The capability of an organization to minimize waste and maximize outputs with the lowest input costs.

Quality Circle

A group of workers who voluntarily meet regularly to discuss and propose solutions to workplace problems, aiming to improve quality and efficiency.

Focus Group

A research method involving a small, diverse group of people whose reactions are studied especially in response to new products or policies.