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Overhead costs are assigned to clients based on direct labor hours using normal costing. The following information is for the month of September: Estimated direct
Overhead costs are assigned to clients based on direct labor hours using normal costing. The following information is for the month of September:
Estimated direct labor hours 3,000 hours
Estimated overhead costs $27,000
Actual direct labor hours 2,700 hours
Actual overhead costs $21,600
How is this solved? Apparently the right answer was $2,700 overapplied but I'm not sure how to get this. Thank you in advance!
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