If Estimated Annual Factory Overhead Is $480,000; Overhead Is Applied

question 59

Multiple Choice

If estimated annual factory overhead is $480,000; overhead is applied using direct labor hours; estimated annual direct labor hours are 200,000; actual March factory overhead is $42,000; and actual March direct labor hours are 17,000; then overhead is:

• A)$800 overapplied.
• B)$200 overapplied.
• C)$800 underapplied.
• D)$200 underapplied.
• E)$1,200 underapplied.

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Definitions:

Pure Monopoly

A pure monopoly exists when a single company or entity is the sole provider of a particular product or service, facing no competition in its market.

Monopolistic Competition

A market configuration where numerous firms offer similar, yet not identical, products, providing them with a certain level of market influence.

Pricing Constraints

Factors that limit the range or extent to which prices can be set for goods and services, including cost, demand, competition, and legal issues.

Competitive Pricing

A pricing strategy where a product or service’s price is set based on the prices of competitors, aiming to offer better value to consumers.