Morris Company Applies Overhead Based on Direct Labor Costs

question 64

Multiple Choice

Morris Company applies overhead based on direct labor costs.For the current year,Morris Company estimated total overhead costs to be $400,000,and direct labor costs to be $2,000,000.Actual overhead costs for the year totaled $380,000,and actual direct labor costs totaled $1,800,000.
-At year-end,the balance in the Factory Overhead account is a:

• A)$380,000 Debit balance.
• B)$360,000 Debit balance.
• C)$20,000 Debit balance.
• D)$400,000 Credit balance.
• E)$20,000 Credit balance.

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