Question: [Note) This question and the next for previous) question are based on the same data! Plimpton Company produces countertop ovens. Plimpton uses a standard costing
[Note) This question and the next for previous) question are based on the same data! Plimpton Company produces countertop ovens. Plimpton uses a standard costing system. The standard costing system relies on direct labor hours to assign overhead costs to production. The direct labor standard indicates that 4 direct labor hours should be used for every single oven produced. The annual budgeted production volume is usually 9,000 units per year. The budgeted overhead costs for the coming year are determined as follows Fixed overhead $144,000 Variable overhead $180,000 Plimpton applies overhead on the basis of direct labor hours. During the year, Plimpton produced 8,000 units, worked 32.500 direct labor hours and incurred total $295,000 of overhead costs of which $134,000 is fixed overhead Which of the following would be TRUE for the situation described above? The variable verhead costs were under appland during the year Totaltthead Variant during the year was $6.500 untavorable Total o lance during the year wars 57.000 favorite The doveted costs were over oplied during they
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