Question: Marine Engineering Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. This year, the company worked
Marine Engineering Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. This year, the company worked 57,000 actual direct labor hours and incurred $345,000 of actual manufacturing overhead cost. However, the company had estimated that it would work 50,000 direct labor hours during the year. If the company under-applied overhead by $3,000, what was the estimated or budgeted overhead?
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