Mango Company Applies Overhead Based on Direct Labor Costs

question 171

Multiple Choice

Mango Company applies overhead based on direct labor costs.For the current year,Mango Company estimated total overhead costs to be $300,000,and direct labor costs to be $150,000.Actual overhead costs for the year totaled $330,000,and actual direct labor costs totaled $170,000.
-At year-end,Factory Overhead account is:

• A)Overapplied by $10,000.
• B)Overapplied by $170,000.
• C)Underapplied by $10,000.
• D)Overapplied by $20,000.
• E)Neither overapplied nor underapplied.

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Definitions:

Implicit Favorite

An underlying preference or bias for a particular option or person that is not explicitly acknowledged.

Preferred Choice

The option that is most favorable or desirable to an individual or group based on their values, needs, or available information.

Emotions

Complex psychological states that involve subjective experience, physiological response, and behavioral or expressive response.

Satisficing

A decision-making strategy that involves selecting an option that meets a minimum level of satisfaction, rather than optimizing outcomes.