The following information was gathered for Gophers Company: $$\begin{array} { l r }
\text { Budgeted direct-labor hours } & 31,000 \
\text { Actual direct-labor hours } & 32,400 \
\text { Budgeted factory overhead } & \$ 147,250 \
\text { Actual factory overhead } & \$ 149,980
\end{array}$$ Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.
A)$2,730 underapplied
B)$2,730 overapplied
C)$6,450 underapplied
D)$3,920 overapplied

Question

The following information was gathered for Gophers Company: $$\begin{array} { l r } 
\text { Budgeted direct-labor hours } & 31,000 \
\text { Actual direct-labor hours } & 32,400 \
\text { Budgeted factory overhead } & \$ 147,250 \
\text { Actual factory overhead } & \$ 149,980
\end{array}$$ Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.
A)$2,730 underapplied
B)$2,730 overapplied
C)$6,450 underapplied
D)$3,920 overapplied

Quizplus · Accepted Answer

The Answer of The following information was gathered for Gophers Company: $$\begin{array} { l r } 
\text { Budgeted direct-labor hours } & 31,000 \
\text { Actual direct-labor hours } & 32,400 \
\text { Budgeted factory overhead } & \$ 147,250 \
\text { Actual factory overhead } & \$ 149,980
\end{array}$$ Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.
A)$2,730 underapplied
B)$2,730 overapplied
C)$6,450 underapplied
D)$3,920 overapplied

The Following Information Was Gathered for Gophers Company Assume the Cost Driver Is Direct-Labor Hours