8 Ring of Power 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 totaled $270,000, actual direct labour hours were 105,000. What was the overapplied or underapplied overhead for the year? Select one: a. $2,250 underapplied b. $2,250 overapplied c. $15,000 overapplied d. $15,000 underapplied

8 Ring of Power 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 totaled $270,000, actual direct labour hours were 105,000. What was the overapplied or underapplied overhead for the year? Select one: a. $2,250 underapplied b. $2,250 overapplied c. $15,000 overapplied d. $15,000 underapplied

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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