AUDITING & ASSURANCE SERV.>CUSTOM<W/AC
8th Edition
ISBN: 9781266045905
Author: LOUWERS
Publisher: MCG CUSTOM
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Chapter GB, Problem 4RC
To determine
Explain stratification and the benefits to the audit team of sample stratification.
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Please provide the accurate answer to this general accounting problem using appropriate methods.
Cooper Manufacturing is a job lot manufacturer. The budget for the month of August calls for 12,200 direct labor hours to be worked. The budgeted overhead is $183,000 with a predetermined rate of $15 per hour. Overhead is applied based on actual direct labor hours worked. Actual direct hours were 12,000, and actual overhead spending was $186,000. What was the underapplied or overapplied overhead for the month of August? a. $8,000 b. $3,900 c. $6,000 d. $4,900
Chapter GB Solutions
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