A Manufacturing Company Applies Factory Overhead Based on Direct Labor

question 174

Multiple Choice

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

• A) $6,000 overapplied
• B) $6,000 underapplied
• C) $54,800 overapplied
• D) $54,800 underapplied

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Definitions:

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A theory suggesting that language influences and shapes our cognitive abilities and the way we perceive and understand the world.

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