Gaters Incorporated Makes a Single Product--An Electrical Motor Used in Many

question 130

Essay

Gaters Incorporated makes a single product--an electrical motor used in many long-haul trucks.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 company incurred a total of $240,080 in manufacturing overhead cost during the year.
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

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Definitions:

Car Selection

The process of choosing a vehicle based on criteria such as needs, preferences, budget, and performance specifications.

Reduced Time

Strategies or measures implemented to decrease the amount of time required to perform a task or process, often leading to increased efficiency.

Crowding

A situation where excess demand in a confined space or system leads to uncomfortable or inefficient conditions, often observed in urban areas, public transport, or event management.

Mass Irritation Phenomenon

A social or psychological phenomenon where a large number of individuals feel annoyance or discomfort due to a common cause.