Bonehead Co The Total Underapplied or Overapplied Factory Overhead for Bonehead Co

question 93

Multiple Choice

Bonehead Co. has the following factory overhead costs for the most recent period: $\begin{array}{lr}\text { Standard overhead cost applied to this period's production } & \$ 72,000 \\\text { Flexible budget for overhead based on output (i.e., units produced) } & 65,000 \\\text { Total budgeted overhead in the master (static) budget } & 86,000 \\\text { Actual total overhead cost incurred during the period } & 76,000\end{array}$ The total underapplied or overapplied factory overhead for Bonehead Co. for the period, to the nearest whole number, is:

• A) $4,000 underapplied.
• B) $7,000 overapplied.
• C) $10,000 overapplied.
• D) $11,000 underapplied.
• E) $14,000 underapplied.

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Definitions:

Private Costs

Costs that are directly borne by the individuals or organizations engaging in an economic activity, excluding external effects.

Intangible Benefits

Advantages or benefits of a product, service, or project that are not easily quantified in monetary terms, such as brand recognition or customer loyalty.

Environmental Sustainability

The responsible interaction with the environment to avoid depletion or degradation of natural resources, ensuring long-term ecological balance.

Stakeholders

Individuals or groups with an interest or stake in the outcome of a project, business, or initiative, such as employees, customers, investors, and suppliers.