Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: The overapplied or underapplied manufacturing for the year was:
A)$1,000 underapplied
B)$1,000 overapplied
C)$3,000 underapplied
D)$3,000 overapplied

Question

Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were:  The overapplied or underapplied manufacturing for the year was:
A)$1,000 underapplied 
B)$1,000 overapplied 
C)$3,000 underapplied 
D)$3,000 overapplied

Quizplus · Accepted Answer

Overhead over or underapplied 11ea7998_5f09_0d66_911b_0b860bc5e393_TB2627_00_TB2627_00

Dukes Corporation Used a Predetermined Overhead Rate This Year of $2