(Appendix 10A) Vaden Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

-The total manufacturing overhead is underapplied or overapplied by how much?
A) $9,216 Overapplied
B) $9,216 Underapplied
C) $47,940 Underapplied
D) $47,940 Overapplied

Question

(Appendix 10A) Vaden Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
 
-The total manufacturing overhead is underapplied or overapplied by how much?
A) $9,216 Overapplied 
B) $9,216 Underapplied 
C) $47,940 Underapplied 
D) $47,940 Overapplied

Quizplus · Accepted Answer

11ea7761_173e_66dc_81a5_c10b5595f640_TB2580_00

(Appendix 10A) Vaden Incorporated Makes a Single Product--A Critical Part