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Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $427,500;
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $427,500; materials of $415,000 and direct labor of $225,000. During the year Adams incurred $450,900 in materials costs, $445,600 in overhead costs and $229,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year. Multiple Choice $10,500 overapplied. $18,100 overapplied. $10,500 underapplied. $18,100 underapplied. $5,300 underapplied
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