Reference no: EM132502219
Question 1: Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $456,000, and direct labor costs to be $2,280,000. Actual overhead costs for the year totaled $422,000, and actual direct labor costs totaled $1,940,000. At year-end, Factory Overhead is:
Option a) Overapplied by $68,000.
Option b) Overapplied by $34,000
Option c) Underapplied by $34,000.
Option d) Overapplied by $211,000.
Option e) Neither overapplied nor underapplied
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