TB MC Qu. 15-131 (Algo) Morris Company applies overhead based on direct labor...

Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $416,000, and direct labor costs to be $2,080,000. Actual overhead costs for the year totaled $392,000, and actual direct labor costs totaled $1,840,000. At year-end, Factory Overhead is:

Multiple Choice

• Overapplied by $24,000.

• Overapplied by $196,000.

• Underapplied by $24,000.

• Overapplied by $48,000.

• Neither overapplied nor underapplied.