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Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 $ 80,000 69,000 118,000 December 31 $ 43,000 45,000 103,000 Direct materials Work in process Finished goods Other information Direct materials purchases Cost of goods available for sale Actual factory overhead costs $ 327,000 929,000 263,000 The amount of underapplied or overapplied overhead is: O $75,000 overapplied. O $75,000 underapplied. $28,000 overapplied. O $28,000 underapplied. O $0
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