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Malcolm Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The estimates for the year were: Manufacturing
Malcolm Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs.
The estimates for the year were: | |
Manufacturing overhead | $16,240 |
Direct labor hours | 11,600 |
The actual results for the year were: | |
Manufacturing overhead | $21,700 |
Direct labor hours | 13,000 |
The cost records for the year will show
A.Overapplied overhead of $5,460.
B.Underapplied overhead of $5,460
C.Overapplied overhead of $3,500.
D.Underapplied overhead of $3,500
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