The Winchester Company estimates that its overhead costs will amount to $523,600 and the company's manufacturing employees will work 77,000 direct labor hours during the current year. If actual overhead costs for the year amounted to $572,000 and actual labor hours amounted to 82,000, then overhead would be:

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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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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The Winchester Company estimates that its overhead costs will amount to $523,600 and the company's manufacturing
employees will work 77,000 direct labor hours during the current year. If actual overhead costs for the year amounted to
$572,000 and actual labor hours amounted to 82,000, then overhead would be:
Multiple Choice
underapplied by $14,400.
overapplied by $48,400.
underapplied by $48,400.
overapplied by $14,400.
Transcribed Image Text:The Winchester Company estimates that its overhead costs will amount to $523,600 and the company's manufacturing employees will work 77,000 direct labor hours during the current year. If actual overhead costs for the year amounted to $572,000 and actual labor hours amounted to 82,000, then overhead would be: Multiple Choice underapplied by $14,400. overapplied by $48,400. underapplied by $48,400. overapplied by $14,400.
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