The Owens Company Uses the Machine Hour Method of Applying

question 44

Multiple Choice

The Owens Company uses the machine hour method of applying factory overhead to production.The budgeted factory overhead last year was $200,000,and there were 40,000 machine hours budgeted.Actual machine hours incurred during the period were 38,000,and actual factory overhead was $215,000.What was the amount of under- or overapplied factory overhead?

• A)$10,000 underapplied
• B)$15,000 underapplied
• C)$25,000 underapplied
• D)$10,000 overapplied

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Definitions:

Matrix Structure

An organizational structure that creates dual lines of authority and combines functional and product departments in a way that allows for a high level of collaboration.

Primary Boss

The main supervisor or manager directly responsible for overseeing an employee's work performance and progress.

Secondary Bosses

Individuals in a workplace who have some degree of authority and responsibility for others but are not the primary supervisor.

Divisional Structure

An organizational framework where operations are grouped based on divisions, where each division operates as a semi-autonomous unit with its own management.