Lonestar Corporation uses a job-order costing system to account for product costs. The following information pertains to 2014: Factory overhead rate is $18 per direct labor hour.
What is the amount of under- or overapplied overhead for Lonestar Corporation in 2014?
A) $40,000 overapplied
B) $20,000 overapplied
C) $40,000 underapplied
D) $20,000 underapplied

Question

Lonestar Corporation uses a job-order costing system to account for product costs. The following information pertains to 2014:  Factory overhead rate is $18 per direct labor hour.
What is the amount of under- or overapplied overhead for Lonestar Corporation in 2014?
A) $40,000 overapplied 
B) $20,000 overapplied 
C) $40,000 underapplied 
D) $20,000 underapplied

Quizplus · Accepted Answer

The Answer of Lonestar Corporation uses a job-order costing system to account for product costs. The following information pertains to 2014:  Factory overhead rate is $18 per direct labor hour.
What is the amount of under- or overapplied overhead for Lonestar Corporation in 2014?
A) $40,000 overapplied 
B) $20,000 overapplied 
C) $40,000 underapplied 
D) $20,000 underapplied

Lonestar Corporation Uses a Job-Order Costing System to Account for Product