During 2010, Cotte Manufacturing expected Job No. 59 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $280,000, $550,000 in materials used, and $220,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?
A) $20,000 underapplied
B) $20,000 overapplied
C) $50,000 underapplied
D) $50,000 overapplied
Correct Answer:
Verified
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