Meger Manufacturing Uses the Direct Labor Cost Method for Applying

question 34

Multiple Choice

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production.The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000,respectively.Actual direct labor cost and factory overhead were $1,100,000 and $825,000,respectively. What is the amount of under- or overapplied factory overhead?

• A)$25,000 overapplied
• B)$55,000 overapplied
• C)$80,000 overapplied
• D)$50,000 underapplied

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Definitions:

Neutrons

Subatomic particles found in the nucleus of an atom, with no electrical charge and a mass slightly greater than that of protons.

Electron Shells

The different energy states of electrons arranged around the nucleus of an atom.

Atomic Weight

The sum of the weight of the subatomic particles in an average atom of an element, given in atomic mass units.

Green Olivine

A green-colored, magnesium-iron silicate mineral often found in igneous rocks, indicative of certain geological conditions.