Morris Company Applies Overhead Based on Direct Labor Costs

question 197

Multiple Choice

Morris Company applies overhead based on direct labor costs.For the current year,Morris Company estimated total overhead costs to be $400,000,and direct labor costs to be $2,000,000.Actual overhead costs for the year totaled $380,000,and actual direct labor costs totaled $1,800,000.
-At year-end,Factory Overhead is:

• A)Overapplied by $20,000.
• B)Overapplied by $190,000.
• C)Underapplied by $20,000.
• D)Overapplied by $40,000.
• E)Neither overapplied nor underapplied.

---

Definitions:

Public Offering

The process of a company selling its shares to the public for the first time, also known as an initial public offering (IPO).

Non-Charitable Organizations

Organizations that do not qualify as charitable due to not fulfilling the specific criteria related to public benefit.

Agricultural Corporations

are companies engaged in the business of agriculture, which may include farming, raising livestock, and producing agricultural products.

Post-Effective Period

A timeframe following the official effectiveness of a legal document or regulation during which certain provisions or requirements come into effect.