a Maxwell Manufacturing is a job order manufacturer. Their July budget estimates 6,000 direct labor hours with budgeted overhead of $72,000 and predetermined rate of $12 per hour. Overhead is applied based on actual direct hours worked. In July, actual direct hours were 6,200 and actual overhead spending was $78,000. Calculate the under or over applied overhead for July. (Note: Show over applied as a negative number)

a Maxwell Manufacturing is a job order manufacturer. Their July budget estimates 6,000 direct labor hours with budgeted overhead of $72,000 and predetermined rate of $12 per hour. Overhead is applied based on actual direct hours worked. In July, actual direct hours were 6,200 and actual overhead spending was $78,000. Calculate the under or over applied overhead for July. (Note: Show over applied as a negative number)

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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