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Rivertown Products Applied Overhead to Jobs at a Rate of $10.00

Question 137

Multiple Choice

Rivertown Products applied overhead to jobs at a rate of $10.00 per direct labor hour.If the budgeted manufacturing overhead was $660,000 and the actual manufacturing overhead incurred was $630,000, how much under or over applied overhead did Rivertown have?


A) $30,000 underapplied
B) $30,000 overapplied
C) $60,000 overapplied
D) Information provided is not sufficient to derive the answer

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