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Freeman Company uses a predetermined overhead rate based ondirect labor-hours to apply manufacturing overhead to jobs. At thebeginning of the year, the company estimated manufacturing
Freeman Company uses a predetermined overhead rate based ondirect labor-hours to apply manufacturing overhead to jobs. At thebeginning of the year, the company estimated manufacturing overheadwould be $150,000 and direct labor-hours would be 10,000. Theactual figures for the year were $186,000 for manufacturingoverhead and 12,000 direct labor-hours. The cost records for theyear will show:
A. Overapplied overhead of$30,000
B. B. underapplied overhead of$30,000
C. Underapplied overhead of$6,000
D. Overapplied overhead of$6,000
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