(Appendix 10A) Vaden Incorporated Makes a Single Product--A Critical Part

question 70

Multiple Choice

(Appendix 10A) Vaden Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

-The total manufacturing overhead is underapplied or overapplied by how much?

• A) $9,216 Overapplied
• B) $9,216 Underapplied
• C) $47,940 Underapplied
• D) $47,940 Overapplied