Devon's Ltd manufactures radios. Its actual cost are direct material $12,000, labor cost $25,000 and overhead $17,000. The company's estimated overhead rate is 150% of the direct materials. Overhead is therefore: Oa. $1,000 Under appled O b. $1,000 Over applied c. $8,000 Under applied O d. $7,000 Over applied CLEAR MY CHOICE
Devon's Ltd manufactures radios. Its actual cost are direct material $12,000, labor cost $25,000 and overhead $17,000. The company's estimated overhead rate is 150% of the direct materials. Overhead is therefore: Oa. $1,000 Under appled O b. $1,000 Over applied c. $8,000 Under applied O d. $7,000 Over applied CLEAR MY CHOICE
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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based on the attached what is the answer?
![Devon's Ltd manufactures radios. Its actual cost are direct material $12,000, labor cost $25,000 and overhead
$17,000. The company's estimated overhead rate is 150% of the direct materials. Overhead is therefore:
O a. $1,000 Under appled
O b. $1,000 Over applied
c. $8,000 Under applied
O d. S7,000 Over applied
CLEAR MY CHOICE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d0b1722-cd66-4e8e-b55f-a5153c11d76d%2Fe942dc3e-22a3-49e8-850c-3c0fa1b46a76%2Fddcjqek_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Devon's Ltd manufactures radios. Its actual cost are direct material $12,000, labor cost $25,000 and overhead
$17,000. The company's estimated overhead rate is 150% of the direct materials. Overhead is therefore:
O a. $1,000 Under appled
O b. $1,000 Over applied
c. $8,000 Under applied
O d. S7,000 Over applied
CLEAR MY CHOICE
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