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Omaha Industries is a manufacturer that uses job-order costing and applies overhead to production using a single factory wide overhead rate. Omaha provides you with
Omaha Industries is a manufacturer that uses job-order costing and applies overhead to production using a single factory wide overhead rate. Omaha provides you with the following budgeted and actual information regarding its current year manufacturing operations: Budgeted Total Factory Overhead $1,050,000 Direct Materials ("DM") Requisitioned $625,000 Pounds of DM Requisitioned 25,000 Direct Labor Dollars $1,250,000 Direct Labor Hours 28,000 Machine Hours 35,000 Actual $1,080,000 $574,200 26.100 $1,242,000 27,600 36,500 For purposes of this question only, assume Omaha applies overhead to production jobs using direct labor dollars as its cost driver. Select the answer choice below that shows the value of the company's over or under applied overhead for the current year
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