Brister Incorporated Has Provided the Following Data Concerning Its Overhead

question 122

Multiple Choice

Brister Incorporated has provided the following data concerning its overhead variances for the most recent period:
The total manufacturing overhead is underapplied or overapplied by how much?

• A) $7,136 Overapplied
• B) $7,136 Underapplied
• C) $27,296 Overapplied
• D) $27,296 Underapplied

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, indicating how much the actual labor rate deviates from the expected standard.

Standard Costs

The predetermined costs associated with manufacturing a product or providing a service, used for budgetary and performance evaluation purposes.

Direct Labor Time Variance

A measure of the difference between the expected time to complete a task and the actual time taken.

Direct Labor Costs

The wages and related expenses for employees who are directly involved in the production of goods or services.