Question
1-3 (2-3) 2. Avery Co uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. For the month of
1-3 (2-3)
2. Avery Co uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. For the month of Oct Averys estimated manufacturing overhead cost was $300,000 based on an estimated activity level of 100,000 direct labor hours. Actual overhead amounted to $325,000 with actual direct labor hours totaling 110,000 for the month. How much was the overapplied or underapplied overhead? A. $25,000 overapplied B. $25,000 underapplied C. $5000 overapplied D. $5000 underapplied
3. Heller Cannery Inc uses a predetermined overhead rate bassed on machine hours to apply manufacturing overhead to jobs. The company estimated that it would incur $510,000 in manufacturing overhead during the year and that it would work 100,000 machine hours. The company actually worked 105,000 machine hours and incurred $540,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? A. $4500 overapplied B. $4500 underapplied C. $30,000 overapplied D. $30,000 underapplied
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