During the year, Paul Company used a predetermined overhead rate of $3.50 per direct labour hour,...

 

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During the year, Paul Company used a predetermined overhead rate of $3.50 per direct labour hour, based on an estimate of 22,000 direct labour hours to be worked during the year. Actual overhead cost and activity during the year were: Actual manufacturing overhead cost incurred Actual direct labour hours worked What was the under- or overapplied overhead for the year? a $10.500 overapplied b. $13,000 underapplied c. $2,500 underapplied d. $2,500 overapplied $90,000 25,000 During the year, Paul Company used a predetermined overhead rate of $3.50 per direct labour hour, based on an estimate of 22,000 direct labour hours to be worked during the year. Actual overhead cost and activity during the year were: Actual manufacturing overhead cost incurred Actual direct labour hours worked What was the under- or overapplied overhead for the year? a $10.500 overapplied b. $13,000 underapplied c. $2,500 underapplied d. $2,500 overapplied $90,000 25,000

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