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

---

Definitions:

David Neeleman

An American entrepreneur best known for founding several airlines, including JetBlue Airways and Azul Brazilian Airlines.

Slums of Brazil

Highly populated urban residential areas in Brazil characterized by inadequate housing and infrastructure.

Agreeableness

A personality trait characterized by warmth, friendliness, and tactfulness.

Big Five

A model outlining five broad dimensions of human personality traits: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.