Chapter 1, Problem 13.1EC

Can you explain the correct approach to solve this general accounting question?

How does resource consumption sequencing affect cost accumulation? (a) Sequence remains irrelevant (b) Random recording works fine (c) Usage patterns determine proper recording order (d) Standard methods fit all

Shri Manufacturing has estimated total factory overhead costs of $625,000 and 25,000 direct labor hours for the current fiscal year. If direct labor hours for the year total 23,500 and actual factory overhead totals $610,000, what is the amount of overapplied or underapplied overhead for the year?

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