Hartley Industries uses a predetermined overhead rate based on direct labor dollars. The company estimated that its 2025 overhead would total $1,050,000, and that 2025 direct labor costs would be $750,000. During 2025, actual overhead costs were $1,080,000, and actual direct labor costs were $780,000. By how much was Hartley's overhead over- or under applied?

Hartley Industries uses a predetermined overhead rate based on direct labor dollars. The company estimated that its 2025 overhead would total $1,050,000, and that 2025 direct labor costs would be $750,000. During 2025, actual overhead costs were $1,080,000, and actual direct labor costs were $780,000. By how much was Hartley's overhead over- or under applied?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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