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Actual manufacturing overhead costs incurred during June totaled $52,330. ! Required information [The following information applies to the questions displayed below.) Creative Lighting Inc. makes
Actual manufacturing overhead costs incurred during June totaled $52,330.
! Required information [The following information applies to the questions displayed below.) Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year, $59,050 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $6.51 per direct labor hour. c. Identify two possible explanations for the over- or underapplied overhead. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Actual costs were less than anticipated. U More hours were worked. Additional variable costs. Additional fixed costs. U Allocated costs less than anticipatedStep by Step Solution
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