Jackson Inc.listed the following data for 2010:
Round calculations to two significant digits.
If overhead is applied based on direct labor hours,the overapplied/underapplied overhead is:

Question

Jackson Inc.listed the following data for 2010: 
Round calculations to two significant digits.
If overhead is applied based on direct labor hours,the overapplied/underapplied overhead is:

Quizplus · Accepted Answer

To calculate overapplied or underapplied overhead, we need to compare the actual overhead cost with the overhead cost applied based on the predetermined overhead rate. Here, the actual overhead cost is $1,393,100 and the overhead cost applied is $1,559,955 ($48,740 + $1,511,215). So, the difference is $166,855, which is overapplied overhead. Therefore, the correct answer is B, $166,855 overapplied.

Jackson Inc.listed the Following Data for 2010