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Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead
Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,320,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,440,000, with actual direct labor cost of $670,000. For the year, manufacturing overhead was:
A. over applied by 41000
B. underapplied by 34000
C. under applied by 41000
D. overapplied by 34000
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