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:

Demographic Transition

A model describing the transformation of a country from high birth and death rates to low birth and death rates as it develops economically, leading to a stable population size.

Birthrates

The number of live births per thousand people in a population over a given period of time.

Death Rates

A rate indicating the frequency of deaths among a distinct cohort, normalized to its population size, during a specific timeframe.

Demographic Transition

A model that describes the transformation of a country's population structure, typically from high birth and death rates to low birth and death rates, as part of economic development.