2. Crystal Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $255,000 for the year and direct labour hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totalled $270,000, actual direct labour hours were 105,000. What was the overapplied or underapplied overhead for the year? Select one: a. $15,000 overapplied. b. $2,250 overapplied. c. $15,000 underapplied. d. $2,250 underapplied.
2. Crystal Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $255,000 for the year and direct labour hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totalled $270,000, actual direct labour hours were 105,000. What was the overapplied or underapplied overhead for the year? Select one: a. $15,000 overapplied. b. $2,250 overapplied. c. $15,000 underapplied. d. $2,250 underapplied.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...
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2.
Crystal Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $255,000 for the year and direct labour hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totalled $270,000, actual direct labour hours were 105,000. What was the overapplied or underapplied overhead for the year?
Select one:
a. $15,000 overapplied.
b. $2,250 overapplied.
c. $15,000 underapplied.
d. $2,250 underapplied.
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