Reference no: EM132509023
Question 1: Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $476,000, and direct labor costs to be $2,380,000. Actual overhead costs for the year totaled $437,000, and actual direct labor costs totaled $1,990,000. At year-end, Factory Overhead is?
Option 1: Overapplied by $39,000.
Option 2: Overapplied by $218,500.
Option 3: Underapplied by $39,000.
Option 4: Overapplied by $78,000.
Option 5: Neither overapplied nor underapplied.
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