ABC Company Listed the Following Data for the Current Year

question 36

Multiple Choice

ABC Company listed the following data for the current year: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 1,044,000 \\\text { Budgeted direct labor hours } & 69,600 \\\text { Budgeted machine hours } & 24,000 \\\text { Actual factory overhead } & 1,037,400 \\\text { Actual labor hours } & 72,600 \\\text { Actual machine hours } & 23,600\end{array}$ If overhead is applied based on direct labor hours, the overapplied/underapplied overhead is:

• A)$15,300 underapplied.
• B)$15,300 overapplied.
• C)$51,600 underapplied.
• D)$51,600 overapplied.
• E)$-0-

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Definitions:

Newly Manufactured

Items or products that have been recently produced, as opposed to being second-hand or reused.

Personal Income

The total income received by individuals from all sources including wages, salaries, dividends, and any other income before taxes.

Disposable Personal Income

The sum of money remaining for savings and expenditures in households once income taxes are deducted.

National Income

The total amount of money earned by a nation's people and businesses, including wages, rent, interest, and profits.