The big hope housing company uses a predetermined overhead rate to allocate overhead based on Direct Labor
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The big hope housing company uses a predetermined overhead rate to allocate overhead based on Direct Labor cost. This years budget includes Overhead equal to $500,000 and Direct Labor cost of $625,000. This years actual Direct Labor cost equaled $600,000 and the actual Overhead incurred equaled $475,000. Calculate the over/under applied Overhead for the year. Clearly indicate whether overhead is Over or Under applied. Show work
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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