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During 2013, Cotte Manufacturing Expected Job No

Question 136

Multiple Choice

During 2013, 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 $290,000, $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) $10,000 underapplied
B) $10,000 overapplied
C) $40,000 underapplied
D) $40,000 overapplied

Correct Answer:

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