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Question
Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as the allocation base, calculate the under- or overapplied overhead for the period.
A. $150,000 overapplied.
B. $150,000 underapplied.
C. $300,000 underapplied.
D. $300,000 overapplied.
E. $200,000 underapplied.
Answer
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Related questions
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Q:
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