Reference no: EM132502220
Question 1: Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $400,000, and direct labor costs to be $200,000. Actual overhead costs for the year totaled $425,000, and actual direct labor costs totaled $226,000. At year-end, Factory Overhead account is:
Option a) Overapplied by $26,000.
Option b) Overapplied by $226,000.
Option c) Neither overapplied nor underapplied
Option d) Underapplied by $27,000.
Option e) Overapplied by $27,000
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