Answer:
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Answer:
E. Over applied overhead
Explanation:
Over applied overhead is defined as excess amount of overhead applied during a production period over the actual overhead incurred during that period. In other words, it means excess overhead applied to work over the amount of overhead actually incurred.
When this occurs, it is called favourable variance and it is added to the budgeted profit in the end of the accounting period in a financial statement.
$6.00 + 1.50(x) ≤ $12.00
1.50 x ≤ $12 - 6
1.50 x ≤ 6
x = 6.00÷1.50
x= 4 hours