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Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to
Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred = $47,000
Actual direct labour hours worked = 24,000
What was the under- or overapplied overhead last year?
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