No 18

18 was $260.720 and actual labor hours were 19.050. Before disposition of under over applied overhead, account balances were Total Account Labor Hours Account Balance Reflected in Each Account WIP $190,000 1.905 hours Finished Goods 250.000 6,667.50 hours Cast of Goods Sold 560.000 10.477.50 hours Total $1,000,000 19.050 hours Using the proration approach based on the amount of overhead in each account balance, the ending balance in WIP after adjustment would be 5187416 5188,640 $192,584 $191.360 19 For a company with diverse products, undercosting overhead of a product will lead to product-cross-subsidization which means that direct labor costs of the product are also misallocated. direct material costs of the product are also misallocated. direct costs of another product are also misallocated. indirect costs of another product are also misallocated. RAZER