Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to
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Question:
Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked. The company estimated that it would incur $525,000 of manufacturing overhead costs during the year and that 150,000 direct labor hours would be worked.
By how much were manufacturing overhead costs overallocated or sub allocated during the year?
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