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A manufacturing company budgeted for $1,240,000 in manufacturing overhead and expected 400,000direct labor hours. Actual overhead was $1,200,000, and actual direct labor hours were 390,000.
A manufacturing company budgeted for $1,240,000 in manufacturing overhead and expected 400,000direct labor hours. Actual overhead was $1,200,000, and actual direct labor hours were 390,000.
Was manufacturing overhead over- or underapplied and by how much?
Overapplied by $9,000
Underapplied by $9,000
Overapplied by $40,000
Underapplied by $40,000
Please explain why it would be overapplied or underapplied.
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