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 $404,064 and direct labor hours would be 44,896. Actual factory overhead costs incurred were $436,743, and actual direct labor hours were 50,549. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? Oa. $18,198 overapplied Ob. $454,941 overapplied Oc. $18,198 underapplied Od. $50,877 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 $404,064 and direct labor hours would be 44,896. Actual factory overhead costs incurred were $436,743, and actual direct labor hours were 50,549. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? Oa. $18,198 overapplied Ob. $454,941 overapplied Oc. $18,198 underapplied Od. $50,877 underapplied

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...

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The actual overhead for a company is $74,539. Overhead was based on 6,000 direct labor hours and was $2,539 under applied for the year. What is the overhead application rate per direct labor hour? What is the journal entry to dispose of the under applied overhead?
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