Actual direct labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and
$136,500 respectively. The estimated costs for the year were $75,000 of direct labor and $150,000 in manufacturing overhead. The over (under)applied overhead for the year was:

Question

Quizplus · Accepted Answer

Actual overhead costs were $13,500 less than estimated, so overhead was underapplied by $13,500.

Actual Direct Labor and Manufacturing Overhead Costs for Smith Manufacturing