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Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of
Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the companys fiscal year, $59,910 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $6.84 per direct labor hour.
b. Actual manufacturing overhead costs incurred during June totaled $51,130. Calculate the amount of over- or underapplied overhead for June.
Actual overhead incurred | |
Overhead applied | |
Overapplied overhead |
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