Use the budget data shown below for Sharp Company to answer the question that follow: Estimated direct labor hours 12,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $179,000 Actual direct labor hours 11,500 Actual direct labor dollars $92,000 Actual factory overhead costs $180,000 If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is a.$181,000 b.$180,000 c.$184,000 d.$172,500
Use the budget data shown below for Sharp Company to answer the question that follow: Estimated direct labor hours 12,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $179,000 Actual direct labor hours 11,500 Actual direct labor dollars $92,000 Actual factory overhead costs $180,000 If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is a.$181,000 b.$180,000 c.$184,000 d.$172,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the budget data shown below for Sharp Company to answer the question that follow:
If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is
| Estimated direct labor hours | 12,000 |
| Estimated direct labor dollars | $90,000 |
| Estimated |
$179,000 |
| Actual direct labor hours | 11,500 |
| Actual direct labor dollars | $92,000 |
| Actual factory overhead costs | $180,000 |
If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is
a.$181,000
b.$180,000
c.$184,000
d.$172,500
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