A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $466,920 and direct labor hours would be 46,692. Actual factory overhead costs incurred were $496,253, and actual direct labor hours were 51,693. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? O $516,930 overapplied Ob. 550,010 underapplied Oc. $20,677 overapplied Od. $20,677 underapplied
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $466,920 and direct labor hours would be 46,692. Actual factory overhead costs incurred were $496,253, and actual direct labor hours were 51,693. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? O $516,930 overapplied Ob. 550,010 underapplied Oc. $20,677 overapplied Od. $20,677 underapplied
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $466,920 and
direct labor hours would be 46,692. Actual factory overhead costs incurred were $496,253, and actual direct labor hours were 51,693. What is the amount of overapplied or
underapplied manufacturing overhead at the end of the year?
O $516,930 overapplied
Ob. $50,010 underapplied
Oc. $20,677 overapplied
Od. $20,677 underapplied](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11365ea8-e765-4b65-aee9-26a305e3165c%2F7d8389da-8a8f-4693-9b70-fb8eeaf5ed61%2Frz4ft69_processed.png&w=3840&q=75)
Transcribed Image Text:A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $466,920 and
direct labor hours would be 46,692. Actual factory overhead costs incurred were $496,253, and actual direct labor hours were 51,693. What is the amount of overapplied or
underapplied manufacturing overhead at the end of the year?
O $516,930 overapplied
Ob. $50,010 underapplied
Oc. $20,677 overapplied
Od. $20,677 underapplied
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