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The Following Information Was Gathered for All the Products Made

Question 37

Multiple Choice

The following information was gathered for all the products made by the BBB Company:
 Budgeted direct labor hours 8,000 Actual direct labor hours 8,100 Budgeted factory overhead costs $224,000 Actual factory overhead costs $224,970\begin{array}{ll}\text { Budgeted direct labor hours } &8,000 \\\text { Actual direct labor hours } & 8,100\\\text { Budgeted factory overhead costs }&\$224,000\\\text { Actual factory overhead costs }&\$224,970\end{array}
Assume the cost driver for factory overhead costs is direct labor hours.What is the amount of overapplied or underapplied overhead?


A) $970 underapplied
B) $970 overapplied
C) $1,830 underapplied
D) $1,830 overapplied

Correct Answer:

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