Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000.
- At year-end, the balance in the Factory Overhead account is a:
A) $330,000 Debit balance.
B) $340,000 Credit balance.
C) $10,000 Debit balance.
D) $10,000 Credit balance.
E) $170,000 Debit balance.

Question

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The Answer of Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000.
- At year-end, the balance in the Factory Overhead account is a:
A) $330,000 Debit balance.
B) $340,000 Credit balance.
C) $10,000 Debit balance.
D) $10,000 Credit balance.
E) $170,000 Debit balance.

Mango Company Applies Overhead Based on Direct Labor Costs