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

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

11eacbfc_c803_7c1b_8ffe_6dbd0f51cd6f_TB7552_00

Vaden Incorporated Makes a Single Product-A Critical Part Used in Commercial