Use the Following Information to Answer the Following Item(s)

question 80

Multiple Choice

Use the following information to answer the following item(s) .

-The amount of the overhead variance would be

• A) $24,400 overapplied.
• B) $24,400 underapplied.
• C) $8,400 overapplied.
• D) $8,400 underapplied.

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Definitions:

Operating Loss

A situation where a company's operating expenses exceed its gross profits or revenues.

Year 2

Typically refers to the second year of a business or project, often used in the context of financial or growth performance analysis.

Variable Costing

An accounting technique that involves only variable costs like direct materials, direct labor, and variable manufacturing overhead in the costing of products.

Absorption Costing

A method of accounting that incorporates all costs related to manufacturing—including direct materials, direct labor, and all manufacturing overheads, whether fixed or variable—into the product's cost.