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Cretin Enterprises uses a predetermined overhead rate of $10.70 per direct labour-hour. This predetermined rate was based on 16,000 estimated direct labour-hours and $171,200 of
Cretin Enterprises uses a predetermined overhead rate of $10.70 per direct labour-hour. This predetermined rate was based on 16,000 estimated direct labour-hours and $171,200 of estimated total manufacturing overhead.
The company incurred actual total manufacturing overhead costs of $345,000 and 16,500 total direct labour-hours during the period.
Determine the amount of underapplied or overapplied manufacturing overhead for the period.
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