Refer to the James Ingram Information Below

question 40

Multiple Choice

Refer to the James Ingram information below.
James Ingram assigns overhead to jobs based on direct labour hours. At the beginning of the current year, estimated overhead costs were $300 000 and estimated direct labour hours were 50 000, while estimated machine hours were 60 000. During the year, 500 direct labour hours and 400 machine hours were used on Job #99. By the end of the year, actual overhead costs were calculated to be $218 000. Actual direct labour hours was 39 000 while actual machine hours was 48 000.
-What is the over/under application for the year,if direct labour hours is the overhead cost driver?

• A) $16 000 under applied
• B) $22 000 over applied
• C) $16 000 over applied
• D) $22 000 under applied

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Definitions:

Positive Expectations

The belief or outlook that future outcomes will be favorable or beneficial, often influencing motivation, performance, and the approach to tasks or goals.

Work/Life Balance

The equilibrium between personal life and career demands, emphasizing the importance of prioritizing both areas for overall well-being and satisfaction.

Minimize Stress

Strategies or actions taken to reduce the level of strain and tension experienced by individuals.

Flexible Work Time

An arrangement that allows employees to vary their working hours and schedules, often to accommodate personal needs.