Fresco Production Uses a Predetermined Overhead Rate Based Upon Direct

question 14

Multiple Choice

Fresco Production uses a predetermined overhead rate based upon direct labour hours. The firm has the following budgeted and actual data for the current year:
$$\begin{array} { l r } \text { Budgeted factory overhead cost } & \$ 12000 \\\text { Actual factory overhead cost } & \$ 13500 \\\text { Budgeted direct labour hours } & 2000 \\\text { Actual direct labour hours } & 2400\end{array}$$
What was the amount of underapplied or overapplied overhead for the year?

• A) $1 500 overapplied
• B) $1 500 underapplied
• C) $900 underapplied
• D) $900 overapplied

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Definitions:

Monocular

Relating to, or involving only one eye.

Ocular

Related to the eye or the sense of sight.

Binocular Cue

Visual information taken in by two eyes that enables perception of depth and distance, adding to the sense of three-dimensionality.

Monocular Cue

A depth cue that is available even when the world is viewed with one eye alone, such as size, texture gradient, and linear perspective.