Victryl Company Applies Overhead Based on Direct Labor Hours

question 162

Multiple Choice

Victryl Company applies overhead based on direct labor hours.At the beginning of the year, Victryl estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000.During February, Victryl has 5,000 direct labor hours and 10,000 machine hours.
If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied?

• A) $1200 underapplied
• B) $800 overapplied
• C) $1,000 underapplied
• D) $1,700 overapplied
• E) $600 overapplied

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Definitions:

Depression

A mental health issue denoted by perpetual melancholy or lack of interest in normal endeavors, greatly obstructing daily performance.

Mania

A mental health condition characterized by periods of extreme euphoria, heightened energy, and, in some cases, delusions or hallucinations, typically seen in bipolar disorder.

Schizophrenia

Schizophrenia is a severe mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Hallucinations

Experiences of awareness and alertness without external inputs that possess characteristics resembling genuine perception.