Mango company applies overhead based on direct labor costs. for the current year, mango company estimated total overhead costs to be $360,000, and direct labor costs to be $180,000. actual overhead costs for the year totaled $387,000, and actual direct labor costs totaled $203,000. at year-end, the balance in the factory overhead account is a:

Balance for the Factory Overhead account: 19,000 credit

Explanation:

We will first, calculate the overhead rate based on the predetermination overhead rate:

The total manufacturing cost will be distributed over the cost driver. In this case, labor cost:

360,000/180,000 = 2 overhead rate

Then, we calculate the applied overhead 203,000 x 2 = 406,000

Now, the balance for factory overhead account:

Actual overhead: 387,000 debit

        payable, accumulated depreicaiton and other 387,000 credit

WIP 406,000 debit

Applied Overhead 406,000 credit

Balance:

406,000 - 387,000 = 19,000 credit

answer/// equals both average variable cost and average total cost at their respective minimums;