A Manufacturing Company Applies Overhead Based on Direct Labor Hours

question 58

Multiple Choice

A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $720,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $754,400, and actual direct labor hours were 92,000. What is the amount of overapplied or underapplied overhead at the end of the year?

• A) $34,400 overapplied
• B) $18,400 overapplied
• C) $34,400 underapplied
• D) $18,400 underapplied

---

Definitions:

Social Control

Mechanisms, strategies, and institutions society employs to regulate individual behavior, maintaining order and conformity.

Mobilization

The process of assembling and organizing resources or people for action or deployment.

Resource Mobilization Theory

A theory in social movements that emphasizes the importance of resources, such as money, labor, and materials, for the success of social movements.

New Social Movement Theory

A sociological theory that explains the emergence, dynamics, and impacts of social movements that focus on identity, quality of life, and human rights rather than economic concerns.