Question: A company allocates overhead using direct labor hours. The expected number of direct labor hours is 4,000 for the coming year and the expected overhead

A company allocates overhead using direct labor hours. The expected number of direct labor hours is 4,000 for the coming year and the expected overhead is $80,000. During the year, the company uses 3,600 direct labor hours and the actual overhead was $82,000.

What is the over- or under-absorbed overboard?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

9 NE 9.7 Over- and Under-Absorbed Overhead (5 minutes) A company allocates overhead using direct labor hours. The expected number of direct labor hours for the coming year is 4,000 for the coming...

A company allocates overhead using direct labor hours. The expected number of direct labor hours is 4,000 for the coming year and the expected overhead is $$80,000.$ During the year, the company...

Assume that Kent Manufacturing has two categories of overhead: material handling and quality inspection. The costs expected for these categories for the coming year are as follows: The plant...

Triad Company allocates overhead using direct labor hours as the allocation base. The following information was estimated at the beginning of the years: Estimated MOH $78,000 Estimated Machine Hours...

Triad Company allocates overhead using direct labor hours as the allocation base. The following information was estimated at the beginning of the years: Estimated MOH $48,000 Estimated Machine Hours...

The Molotov plant of Kaboom Industries has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $50,000...

A company has 2 categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $360,000 Inspection $750,000 The plant...

8. Carter Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for th e coming year are as follows Maintenance Inspection $360,000 750,000 The plant...

XAD company is reviewing the behavior of its various activities. XAD is considering various costs and has identified two categories of overhead: maintenance and inspection. Costs expected for these...

Rose Corporations condensed balance sheet for Year 2 is reproduced below: Assets Current assets . . . . . . . . . . . . . . . . . $ 250,000 Noncurrent assets . . . . . . . . . . . . . . 1,750,000...

The definition of compressibility factor Z, Eq. (3.32), may be written in the more intuitive form: V ZE V(ideal gas) where both volumes are at the same T and P. Recall that an ideal gas is a model...

Procter and Gamble ( PG ) paid an annual dividend of $ 2 . 9 2 $ 2 . 9 2 in 2 0 2 1 2 0 2 1 . You expect PG to increase its dividends by 7 . 2 % 7 . 2 % per year for the next five years ( through 2 0...

Dire situation in North Korea drives collective exit of diplomats Russian embassy staff cite medicine shortages and unbearable conditions arising from strict Covid restrictions explain your opinion...

11. What is meant by the statement, as observers of social reality, we are always part of this reality?.

13. Give four examples of psychological Maginot lines.

10. What is meant by the statement, it is the expectation that something will happen that creates actions?.