Use the budget data shown below for Sharp Company to answer the question that follow:Estimated direct labor hours12,000Estimated direct labor dollars$90,000Estimated factory overhead costs$179,000Actual direct labor hours11,500Actual direct labor dollars$92,000Actual factory overhead costs$180,000If factory overhead is applied based on direct labor hours, the amount of overhead to be applied isa.$181,000b.$180,000c.$184,000d.$172,500

Overhead applied = Overhead rate based on direct labor hour * Actual labor hour

Answered: Use the budget data shown below for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EB: Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per...

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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

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