Question
The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours.
The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours. The following data is given:
| Actual Overhead | $325,000 |
| Estimated Overhead | $350,000 |
| Estimated Activity: | |
| 9 volt battery | 100,000 direct labor hours |
| AAA battery | 400,000 direct labor hours |
| Actual Activity: | |
| 9 volt battery | 125,000 direct labor hours |
| AAA battery | 400,000 direct labor hours |
| Units Produced: | |
| 9 volt battery | 500,000 |
| AAA battery | 250,000 |
How much was overhead over/underapplied?
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
1st Extended Canadian Edition
1118878418, 9781118878415
