Question
XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was $250,000 while the actual
XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was $250,000 while the actual overhead cost totaled $265,000. XYZ's estimated direct labor cost was $500,000 and the actual direct labor cost amounted to $510,000. For the current year, overhead was:
Group of answer choices
under-applied by $10,000
under-applied by $15,000
under-applied by $20,000
under-applied by $25,000
over-applied by $10,000
over-applied by $15,000
over-applied by $20,000
over-applied by $25,000
none of the above are correct
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