Multiple Choice
Figure 5-1. Morrow Company applies overhead based on direct labor hours.At the beginning of the year,Morrow estimates overhead to be $620,000,machine hours to be 180,000,and direct labor hours to be 40,000.During February,Morrow has 4,200 direct labor hours and 8,000 machine hours.
Refer to Figure 5-1.If the actual overhead for February is $64,700,what is the overhead variance and is it overapplied or underapplied?
A) $400 underapplied
B) $200 overapplied
C) $1,000 underapplied
D) $400 overapplied
E) $600 overapplied
Correct Answer:
Verified
Correct Answer:
Verified
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