The Overhead Budget, Based on a Budgeted Volume of 100

question 52

Multiple Choice

The overhead budget, based on a budgeted volume of 100 000 direct labour hours, was $255 000. Actual overhead costs amounted to $270 000 and actual direct labour hours were 105 000. By how much was overhead under or overapplied?

• A) $2250 overapplied
• B) $15 000 overapplied
• C) $2250 underapplied
• D) $15 000 underapplied

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Definitions:

Developmental Assignment

A job assignment that is designed to develop the employee's skills and competencies as part of their career development.

Executives

Senior management individuals within an organization who are responsible for making major decisions and overseeing the overall operations.

Junior Employees

Employees who are at the early stages of their career paths, typically holding entry-level positions or having less experience within the company.

Job Rotation

A methodology employed by organizations to develop employee skills and competencies by rotating them through various positions or assignments.