Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The overhead for the year was:
A)$702 underapplied
B)$898 underapplied
C)$702 overapplied
D)$898 overapplied

Question

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The Answer of Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The overhead for the year was:
A)$702 underapplied
B)$898 underapplied
C)$702 overapplied
D)$898 overapplied

Baker Corporation Applies Manufacturing Overhead on the Basis of Direct