Jackson Inc If Overhead Is Applied Based on Direct Labor Hours, Overapplied/underapplied

question 9

Multiple Choice

Jackson Inc. listed the following data for 2019: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 1,271,000 \\\text { Budgeted direct labor hours } & 82,000 \\\text { Budgeted machine hours } & 41,000 \\\text { Actual factory overhead } & 1,201,000 \\\text { Actual direct labor hours } & 86,300 \\\text { Actual machine hours } & 39,400\end{array}$ If overhead is applied based on direct labor hours, overapplied/underapplied overhead is:

• A)$136,650 overapplied.
• B)$136,650 underapplied.
• C)$174,775 underapplied.
• D)$174,775 overapplied.
• E)$-0-.

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Definitions:

Pressure

The force exerted by something against a surface, usually measured in units such as Pascal (Pa) or pounds per square inch (psi).

Basaltic Lava

A type of lava originating from the mantle, characteristically dark and rich in magnesium and iron, with low viscosity.

Shield Volcano

A shield volcano is a type of volcano with broad, gently sloping sides and nearly circular base, formed by the eruption of low-viscosity lava that can flow a great distance from the vent.

Scoria Cone

A small volcanic cone made up of basaltic lava fragments and ash, typically created during explosive eruptions.