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During the current year, Creek Company incurred the following direct labor costs: January $80,000 and February $120,000. Creek uses a predetermined overhead rate of 120%
During the current year, Creek Company incurred the following direct labor costs: January $80,000 and February $120,000. Creek uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $78,000 and $142,800. Actual overhead for the 2 months, respectively, totaled $100,000 and $134,000? Was overhead under- or overapplied during January and by how much?
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