During 2017 Cotte Manufacturing expected Job No. 59 to cost $300000 of overhead $500000 of materials and $200000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $295000 $570000 in materials used and $220000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?
A) $5000 underapplied
B) $5000 overapplied
C) $35000 underapplied
D) $35000 overapplied
Correct Answer:
Verified
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