Blake Industries estimated manufacturing overhead for the year at $350,000. Manufacturing overhead for the year was under applied by $15,000. The company applied $320,000 to Work in Process. The amount of actual overhead would have been: A. $375,000 B. $340,000 C. $335,000 D. $305,000

Blake Industries estimated manufacturing overhead for the year at $350,000. Manufacturing overhead for the year was under applied by $15,000. The company applied $320,000 to Work in Process. The amount of actual overhead would have been: A. $375,000 B. $340,000 C. $335,000 D. $305,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...

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Question

I need guidance with this general accounting problem using the right accounting principles.

Blake Industries estimated manufacturing overhead for the year
at $350,000. Manufacturing overhead for the year was under
applied by $15,000. The company applied $320,000 to Work in
Process. The amount of actual overhead would have been:
A. $375,000
B. $340,000
C. $335,000
D. $305,000

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