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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Definitions:

Physical Stimulation

External stimuli or forces that impact the body, potentially causing physiological responses or sensations.

Difference Threshold

the minimum amount of difference required between two sensory stimuli before an individual can perceive that the two stimuli are indeed different.

Absolute Threshold

The absolute threshold refers to the smallest level of stimulus intensity needed for the stimulus to be correctly detected at least half the time.

Difference Threshold

The minimum difference in stimulation that a person can detect 50 percent of the time, also known as the just noticeable difference.