Lopar Company uses a predetermined overhead rate based on direct labor dollars. Lopar Company estimated that its 20x9 overhead would total $938,000 and that 20x9 direct labor costs would be $670,000. During 20x9, actual overhead costs were $960,000, and actual direct labor costs were $700,000. By how much was Lopar's overhead over- or underapplied? a. $20,000 underapplied b. $10,000 underapplied c. $20,000 overapplied d. $18,000 overapplied
Lopar Company uses a predetermined overhead rate based on direct labor dollars. Lopar Company estimated that its 20x9 overhead would total $938,000 and that 20x9 direct labor costs would be $670,000. During 20x9, actual overhead costs were $960,000, and actual direct labor costs were $700,000. By how much was Lopar's overhead over- or underapplied? a. $20,000 underapplied b. $10,000 underapplied c. $20,000 overapplied d. $18,000 overapplied
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...
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