Sable Company uses direct labor hours as the cost allocation base for allocating manufacturing overhead. At the end of the period overhead is underallocated. This implies that. A) Overhead costs were lower than expected. B) Overhead costs were higher than expected or less labor hours were worked than expected. C) Cost of goods sold should be adjusted downward when the overhead account is closed. D) Overhead costs were lower than expected and more labor hours were worked than expected.

B) Overhead costs were higher than expected or less labor hours were worked than expected.

Explanation:

When using the direct labour hours to allocate cost, the overhead rate is calculated by dividing estimated overhead cost for a period by the estimated activity for that period.

The base that is estimated activity, is in direct labour hours, direct labour cost, or machine hours.

For Sable company to have an excess overhead it means in this ratio either the numerator is higher than estimated, or the denominator is less than expected.

The option that fulfils this is - Overhead costs were higher than expected or less labor hours were worked than expected.

The overhead cost were underestimated by the company.

Overhead costs were higher than expected or less labor hours were worked than expected

Explanation:

Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level (labour hours)

As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.

Over-absorbed overhead implies that the overhead charged using labour hours were higher than the  actual overhead incurred.

Under absorbed overhead implies that the overhead charged using labour hours were lower than the  actual overhead incurred.

Overhead costs were higher than expected or less labor hours were worked than expected

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

2,283,000

explanation:

i just had to add it