Sutherland Company Listed the Following Data for 2019 If Overhead Is Applied Based on Direct Labor Hours, the Budgeted

question 70

Multiple Choice

Sutherland Company listed the following data for 2019: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 2,100,000 \\\text { Budgeted direct labor hours } & 89,000 \\\text { Budgeted machine hours } & 51,000 \\\text { Actual factory overhead } & 2,201,000 \\\text { Actual direct labor hours } & 83,700 \\\text { Actual machine hours } & 48,900\end{array}$ If overhead is applied based on direct labor hours, the overapplied/underapplied overhead is:

• A)$214,376 underapplied.
• B)$214,376 overapplied.
• C)$256,312 underapplied.
• D)$256,312 overapplied.
• E)$225,680 underapplied.

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Definitions:

Material Fact

A fact that could influence the decision-making of an individual or entity, such as in a legal contract or in financial disclosures.

Furnished Information

Data or details provided, often to an authority or for a specific purpose, which are supplied or equipped by a party.

Fraudulent Misrepresentation

Deception used to induce someone into a contract, involving false statements that the speaker knows to be untrue.

Fraudulent Misrepresentation

A false statement of fact made knowingly, or without belief in its truth, or recklessly, intended to induce another party to enter into a contract.