Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Option C is not the right answer Micro Enterprises planned to produce 120,000 lerts per year. Annual overhead, of which 32.5% is variable, is estimated
Option C is not the right answer
Micro Enterprises planned to produce 120,000 lerts per year. Annual overhead, of which 32.5% is variable, is estimated at $320,400. Each lert takes 1.2 machine hours and 3 labor hours to produce. The firm allocates overhead by direct labor hours. In March, when 11,500 lerts were produced, 33,500 direct labor hours were recorded and expenditures on overhead amounted to $31,200. Which is true for this month? Multiple Choice Over-applied overhead is $495 O Under-applied overhead is $495 Under-applied overhead is $1,385 O Over-applied overhead is $1,385 None of the choices are correctStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started