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5. Kess Company manufactures plush animal toys. The company uses a job order cost accounting system and applies overhead costs to its work in process
5. Kess Company manufactures plush animal toys. The company uses a job order cost accounting system and applies overhead costs to its work in process based on direct labor hours. Estimated annual overhead costs Actual annual overhead costs $1,600,000 $1,540,000 Estimated annual machine hours 200,000 Actual annual machine hours 175,000 Estimated annual direct labor hours 400,000 380,000 Actual annual direct labor hours Compute the company's manufacturing overhead applied (or assigned to jobs) for the period and the under- or over-applied amount of overhead for the period. A. $1,540,000 applied and $60,000 over-applied B. $1,347,500 applied and $192,500 under-applied C. $1,400,000 applied and $100,000 over-applied D. $1,520,000 applied and $20,000 under-applied
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