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D Question 20 The Sanderson Sisters uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each

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D Question 20 The Sanderson Sisters uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires 0.5 standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 100.000 units Total overhead was budgeted at $337,500 for the year, and the fixed manufacturing overhead rate was $0.75 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: Actual Production 120.000 units Actual Direct Labor Hours 55,000 Actual Variable Manufacturing Overhead $352,000 Actual Fixed Manufacturing Overhead $50,000 The Sanderson Sisters variable overhead over/under allocation is: 57.500 overallocated $8.000 vers located $12.500 under located 55.000 under located

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