Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $$424,000,$ and direct labor costs to be $$2,120,000.$ Actual overhead costs for the year totaled $$398,000,$ and actual direct labor costs totaled $$1,860,000.$ At year$-$end, the balance in the Factory Overhead account is a:

Question $12$Answer

a$.$

$$398,000$ Debit balance.

b$.$

$$424,000$ Credit balance.

c$.$

$$26,000$ Credit balance.

d$.$

$$372,000$ Debit balance.

e$.$

$$26,000$ Debit balance.