Nala Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor hours were 14,400 hours and the total estimated manufacturing overhead was $355,680. At the end of the year, actual direct labor hours for the year were 15,200 hours and the actual manufacturing overhead for the year was $350,680. Overhead at the end of the year was: A) $24,760 underapplied. B) $24,760 overapplied. C) $19,760 underapplied. D) $19,760 overapplied.
Nala Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor hours were 14,400 hours and the total estimated manufacturing overhead was $355,680. At the end of the year, actual direct labor hours for the year were 15,200 hours and the actual manufacturing overhead for the year was $350,680. Overhead at the end of the year was: A) $24,760 underapplied. B) $24,760 overapplied. C) $19,760 underapplied. D) $19,760 overapplied.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...
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