Applied factory overhead for the period

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Reference no: EM13132286

The Mason Corporation budgeted overhead at $240,000 for the period for Department A based on a budgeted volume of 60,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a debit balance of $260,000; actual direct labor hours were 63,000. What was the under- or over applied factory overhead for the period?

1. $12,000 overapplied
2. $ 8,000 overapplied
3. $ 8,000 underapplied
4. $12,000 underapplied

Reference no: EM13132286

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