Bestman Clothing Company uses direct labor hours method for applying manufacturing overhead. The overhead application rate for
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Bestman Clothing Company uses direct labor hours method for applying manufacturing overhead. The overhead application rate for 2018 is 17.20 per hour, based on anticipated fixed costs of 696,000 and anticipated variable cost of 1,386,000. with an expected volume of 240,000 labor hours.
During the year the company actually operated for 231,600 hours, incurring fixed overhead of 696,000 and variable overhead Of 1,275,760
Question: What is the under or over applied manufacturing overhead for the year?
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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