Question
Neptune Inc. uses a standard cost system and has the following information for the most recent month, April: Actual direct labor hours (DLHS) worked 12,000
Neptune Inc. uses a standard cost system and has the following information for the most recent month, April: Actual direct labor hours (DLHS) worked 12,000 Standard DLHs allowed for good output produced this period Actual total factory overhead costs incurred 13,000 $32,700 Budgeted fixed factory overhead costs $11,100 Denominator activity level, in direct labor hours (DLHs) 11,000 Total factory overhead application rate per standard DLH $ 2.70 The total underapplied or overapplied factory overhead in April for Neptune, Inc., to the nearest whole dollar, was: Multiple Choice $1,100 underapplied. $2,400 overapplied. $4,300 overapplied. $2,400 underapplied. $1,100 overapplied
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