Question
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $412,200; materials of $419,000 and direct labor of $229,000. During the year Adams incurred $436.000 in materials costs, $430,300 in overhead costs and $233,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year. Multiple Choice $18,300 overapplied $10,900 underapplied. $18100 underapplied. $10,900 overapplied. $5.700 underapplied
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