At the end of 2009, Doberman estimated that its 2010 total overhead costs would be $1,800,000 and direct labor hours would be 400,000. At the end of 2010, Doberman determined that actual direct labor hours were 450,000 and actual overhead was $1,950,000. By how much was overhead underapplied or overapplied in 2010?
A) $ 75,000 underapplied
B) $ 75,000 overapplied
C) $150,000 underapplied
D) $150,000 overapplied
E) $225,000 overapplied
Correct Answer:
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