Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
A)overapplied by $15,000
B)underapplied by $15,000
C)overapplied by $3,000
D)underapplied by $3,000

Question

Quizplus · Accepted Answer

The Answer of Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
A)overapplied by $15,000
B)underapplied by $15,000
C)overapplied by $3,000
D)underapplied by $3,000

Sawyer Manufacturing Corporation Uses a Predetermined Overhead Rate Based on Direct