The Sanderson Sisters uses a standard cost system in which manufacturing overhead is applied on the...

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The Sanderson Sisters uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires 0.5 standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 100,000 units. Total overhead was budgeted at $337,500 for the year, and the fixed manufacturing overhead rate was $0.75 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: 120,000 units Actual Production Actual Direct Labor Hours 55,000 Actual Variable Manufacturing $352,000 Overhead Actual Fixed Manufacturing $50,000 Overhead The Sanderson Sisters' variable overhead over/under allocation is: $8.000 overallocated $12,500 underallocated $5.000 underallocated $7.500 overallocated The Sanderson Sisters uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires 0.5 standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 100,000 units. Total overhead was budgeted at $337,500 for the year, and the fixed manufacturing overhead rate was $0.75 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: 120,000 units Actual Production Actual Direct Labor Hours 55,000 Actual Variable Manufacturing $352,000 Overhead Actual Fixed Manufacturing $50,000 Overhead The Sanderson Sisters' variable overhead over/under allocation is: $8.000 overallocated $12,500 underallocated $5.000 underallocated $7.500 overallocated

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Each unit require 05 direct labor hours budgeted production 100000 units so budgted labor ... View the full answer