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Sal Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The
Sal Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 6 Manufacturing overhead costs Direct labour hours Estimated $50, eee 20, eee hours Actual $54,000 24,000 hours Job #461 was completed during the year and the following costs had been incurred on that job: Direct materials: Direct labour: $4, eee $1,500 (at $5.00 per direct labour hour) How much of any underapplied or overapplied overhead would have been due to the fact that the estimated overhead costs were different from the actual? Multiple Choice $4.000 $6.000 $10.000 $14.000. O
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