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Andromeda Corporation started operations this month. They ended the month without any work-in-process or finished goods inventory. Overhead is applied based on direct labor hours.
Andromeda Corporation started operations this month. They ended the month without any work-in-process or finished goods inventory. Overhead is applied based on direct labor hours. Actual results were as follows: Cost of goods sold Direct labor cost Direct labor wage rate per hour Direct materials used Factory utilities Indirect labor cost Indirect labor wage rate per hour Indirect materials cost Miscellaneous overhead cost $72,000 $80,000 $10.00 $23,000 $11,500 $53,000 $770 $5.600 $25,000 If the predtermined rate is $10.00. Was overhead over-applied or under-applied and by how much? Multiple Choice $15,100 overapplied O $21,400 overapplied (0) $43,500 overapplied O $15,100 underapplied $21.400 underapplied
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