Billy Company uses a predetermined overhead rate based on direct labor dollars. Billy Company estimated that its 20x9 overhead would total $946,000 and that 20x9 direct labor costs would be $720,000. During 20x9, actual overhead costs were $960,000, and actual direct labor costs were$850,000. By how much was Billy's overhead over- or underapplied?

Billy Company uses a predetermined overhead rate based on direct labor dollars. Billy Company estimated that its 20x9 overhead would total $946,000 and that 20x9 direct labor costs would be $720,000. During 20x9, actual overhead costs were $960,000, and actual direct labor costs were$850,000. By how much was Billy's overhead over- or underapplied?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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