Hernandez Company, a labor-intensive manufacturer and compiled the following data for the current period:
Assuming that Hernandez Company uses direct labor hours as a cost driver, determine the amount of underapplied or overapplied overhead for the current period?

Question

Hernandez Company, a labor-intensive manufacturer and compiled the following data for the current period:
 Assuming that Hernandez Company uses direct labor hours as a cost driver, determine the amount of underapplied or overapplied overhead for the current period?

Quizplus · Accepted Answer

Actual MOH $550,000 - (Applied MOH ($600,000 budgeted MOH/200,000 budgeted DLHs) x 150,000 actual DLHs) = $100,000 underapplied MOH

Hernandez Company, a Labor-Intensive Manufacturer and Compiled the Following Data