Question: Sandross, Inc. applies overhead based on direct labor hour using a job-order costing system. The company estimated the following annual amounts: Estimated manufacturing overhead $42,000
Sandross, Inc. applies overhead based on direct labor hour using a job-order costing system. The company estimated the following annual amounts:
Estimated manufacturing overhead $42,000
Estimated direct labor 1,500 hours at $15 per hour
Actual amounts for the year were:
Actual manufacturing overhead $43,000
Actual direct labor 1,550 hours at $16 per hour
How much is over or underapplied overhead?
| $600 underapplied | ||
| $400 underapplied | ||
| $600 overapplied | ||
| $3,313 underapplied | ||
| $400 overapplied |
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