At the Beginning of the Year, Rovetti, Inc

question 148

Multiple Choice

At the beginning of the year, Rovetti, Inc. estimated that in the coming year overhead would be $600,000 and direct labour hours would be 200,000. At the end of the year, it had actual overhead of $656,000 and 225,050 direct labour hours.
-Refer to the Figure.What is the overhead variance for Rovetti?

• A)$56,000 overapplied
• B)$56,000 underapplied
• C)$19,150 overapplied
• D)$19,150 underapplied

---

Definitions:

Market Conditions

The various economic and social factors that influence the demand and supply of products and services, including market trends, consumer preferences, and economic indicators.

Plant Capacities

The maximum output or production ability of a manufacturing facility or plant within a given time period.

Cost Leadership

A competitive advantage strategy by minimizing operational costs to offer products or services at the lowest price in the market.

Manufacturing Facilities

Locations where products are produced or assembled.