Neptune Inc The Total Underapplied or Overapplied Factory Overhead in April for Following

question 23

Multiple Choice

Neptune Inc. uses a standard cost system and has the following information for the most recent month, April: $\begin{array}{lr}\text { Actual direct labor hours (DLHs) worked } & 17,000 \\\text { Standard DLHs allowed for good output produced this period } & 18,000 \\\text { Actual total factory overhead costs incurred } & \$ 45,400 \\\text { Budgeted fixed factory overhead costs } & \$ 10,800 \\\text { Denominator activity level, in direct labor hours (DLHs) } & 15,000 \\\text { Total factory overhead application rate per standard DLH } & \$ 2.70\end{array}$ The total underapplied or overapplied factory overhead in April for Neptune, Inc., to the nearest whole dollar, was:

• A) $1,900 underapplied.
• B) $1,900 overapplied.
• C) $3,200 underapplied.
• D) $3,200 overapplied.
• E) $5,100 overapplied.

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Definitions:

Red Blood Cells

Biconcave, disc-shaped cells in the blood that transport oxygen from the lungs to body tissues and carbon dioxide from tissues back to the lungs.

Blood Plasma

The liquid component of blood in which the blood cells are suspended, comprising water and dissolved substances.

Centrifuge Tube

A laboratory vessel used to separate fluids, gas, or liquids, based on density, by spinning them at high speed in a centrifuge.

Viscosity

A measure of a fluid's resistance to flow, often described as its "thickness" or internal friction.