32. For Knight Company, the predetermined overhead rate is 150% of direct labor cost. During the month, Knight incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead was $120,000. a. Overhead is under applied by $12,500 b. Overhead is over applied by $6,500 c. Overhead is under applied by $7,500 d. Overhead is over applied by $7,500

32. For Knight Company, the predetermined overhead rate is 150% of direct labor cost. During the month, Knight incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead was $120,000. a. Overhead is under applied by $12,500 b. Overhead is over applied by $6,500 c. Overhead is under applied by $7,500 d. Overhead is over applied by $7,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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