Morris Company Applies Overhead Based on Direct Labor Costs

question 197

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,Factory Overhead is:

• A)Overapplied by $20,000.
• B)Overapplied by $190,000.
• C)Underapplied by $20,000.
• D)Overapplied by $40,000.
• E)Neither overapplied nor underapplied.

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Definitions:

Impersonal

Lacking personal emotion or warmth; detached or objective.

Self-disclosure

The act of revealing personal information to others, which can strengthen relationships and foster trust.

Very Personal

Describes a level of interaction or communication that is highly individualized and intimate.

Impersonal

Lacking personal features or involvement; not engaging in or involving personal interaction or relationships.