Actual labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and $123,500 respectively.The estimated costs for the year were $75,000 labor and $150,000.The over (under)applied overhead for the year was:

Question

Quizplus · Accepted Answer

To calculate the over(under)applied overhead, we need to subtract the actual overhead amount from the estimated overhead amount:
$150,000 - $123,500 = $26,500 overapplied
Therefore, the correct answer is B.

Actual Labor and Manufacturing Overhead Costs for Smith Manufacturing Were