Brister Incorporated has provided the following data concerning its overhead variances for the most recent period:
The total manufacturing overhead is underapplied or overapplied by how much?
A) $7,136 Overapplied
B) $7,136 Underapplied
C) $27,296 Overapplied
D) $27,296 Underapplied

Question

Brister Incorporated has provided the following data concerning its overhead variances for the most recent period:
 The total manufacturing overhead is underapplied or overapplied by how much?
A) $7,136 Overapplied 
B) $7,136 Underapplied 
C) $27,296 Overapplied 
D) $27,296 Underapplied

Quizplus · Accepted Answer

The key is to realize that the total variance equals the amount by which overhead is underapplied or overapplied and if the variance is unfavorable, overhead is underapplied, and if it is favorable, overhead is overapplied.
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Brister Incorporated Has Provided the Following Data Concerning Its Overhead