Corporate support functions such as IT and Accounting are accounted for in what type of responsibility center?

cost center

investment center

profit center

revenue center

A company uses direct labor hours as its allocation base and has computed a predetermined overhead rate of $12.50 per direct labor hour.

Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000 hours.

Which of the following statements is correct?

Overhead is over applied by $12,500.

Overhead is under applied by $25,000.

Overhead is over applied by $25,000.

Overhead is under applied by $12,500.