The following information was gathered for Larsen Corp. for the year ending 20xx. Budgeted direct labor hours 15,500 Actual direct labor hours 16,200 Budgeted factory overhead cost $73,625 Actual factory overhead cost $74,990 -Assume direct labor hours is the cost driver Required: What is the amount of over/underapplied overhead ? Is the variance over or under estimated ?

The following information was gathered for Larsen Corp. for the year ending 20xx. Budgeted direct labor hours 15,500 Actual direct labor hours 16,200 Budgeted factory overhead cost $73,625 Actual factory overhead cost $74,990 -Assume direct labor hours is the cost driver Required: What is the amount of over/underapplied overhead ? Is the variance over or under estimated ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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