Financial Accounting
Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 11, Problem 10Q
To determine

Identify the person with authority to certify the financial statements filed with SEC.

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Please explain the correct approach for solving this general accounting question.
Kahlo Industries uses a predetermined factory overhead rate based on direct labor-hours. For October, Kahlo's budgeted overhead was $180,000 based on a budgeted volume of 15,000 direct labor-hours. Actual overhead amounted to $192,000, with actual direct labor-hours totaling 14,200. Required: What was over- or underapplied manufacturing overhead in October?
I am looking for the correct answer to this general accounting problem using valid accounting standards.
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