The Peterson Company uses a predetermined overhead rate of 120% of direct labor costs to apply manufacturing overhead. Estimated costs for the upcoming year are: If actual direct labor costs for the year were $19,000, manufacturing overhead will have been: a. Underapplied by $8,200
B) Underapplied by $3,800
C) Underapplied by $2,000
D) Underapplied by $2,200

Question

The Peterson Company uses a predetermined overhead rate of 120% of direct labor costs to apply manufacturing overhead. Estimated costs for the upcoming year are:  If actual direct labor costs for the year were $19,000, manufacturing overhead will have been: a. Underapplied by $8,200
B) Underapplied by $3,800
C) Underapplied by $2,000
D) Underapplied by $2,200

Quizplus · Accepted Answer

The Answer of The Peterson Company uses a predetermined overhead rate of 120% of direct labor costs to apply manufacturing overhead. Estimated costs for the upcoming year are:  If actual direct labor costs for the year were $19,000, manufacturing overhead will have been: a. Underapplied by $8,200
B) Underapplied by $3,800
C) Underapplied by $2,000
D) Underapplied by $2,200

The Peterson Company Uses a Predetermined Overhead Rate of 120