Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $392,400; materials of $408,000 and direct labor of $218,000. During the year Adams incurred $415,400 in materials costs, $410,800 in overhead costs and $222,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $392,400; materials of $408,000 and direct labor of $218,000. During the year Adams incurred $415,400 in materials costs, $410,800 in overhead costs and $222,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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