A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$54,800 underapplied b.$54,800 overapplied c. $6,000 overapplied d.$6,000 underapplied
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$54,800 underapplied b.$54,800 overapplied c. $6,000 overapplied d.$6,000 underapplied
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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Question
![A manufacturing company applies factory
overhead based on direct labor hours. At the
beginning of the year, it estimated that factory
overhead costs would be $360,000 and direct
labor hours would be 30,000. Actual factory
overhead costs incurred were $377,200, and actual
direct labor hours were 36,000. What is the
amount of overapplied or underapplied
manufacturing overhead at the end of the year?
a.$54,800 underapplied
b.$54,800 overapplied
c. $6,000 overapplied
d.$6,000 underapplied](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e5722e3-42c7-4c7b-b614-6efbab18577b%2Faec0683e-7149-4de0-9029-5db7aa6e0de7%2Fypfhh6s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A manufacturing company applies factory
overhead based on direct labor hours. At the
beginning of the year, it estimated that factory
overhead costs would be $360,000 and direct
labor hours would be 30,000. Actual factory
overhead costs incurred were $377,200, and actual
direct labor hours were 36,000. What is the
amount of overapplied or underapplied
manufacturing overhead at the end of the year?
a.$54,800 underapplied
b.$54,800 overapplied
c. $6,000 overapplied
d.$6,000 underapplied
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