Reference no: EM132509012

Question 1: Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $540,000, and direct labor costs to be $270,000. Actual overhead costs for the year totaled $558,000, and actual direct labor costs totaled $302,000. At year-end, the balance in the Factory Overhead account is a:

Possible Answers:

Option 1: $558,000 Debit balance.

Option 2: $302,000 Debit balance.

Option 3: $46,000 Credit balance.

Option 4: $604,000 Credit balance.

Option 5: $46,000 Debit balance.