Ad-on International is an advertising company.It estimated the overhead costs for March,2014,to be $950,000 and direct labor hours to be 5,000 hours.In March,it incurred overhead costs of $1,150,000 and 5,100 labor hours.
-What is the overapplied or underapplied overhead for Ad-on International for March,2014?

Question

Ad-on International is an advertising company.It estimated the overhead costs for March,2014,to be $950,000 and direct labor hours to be 5,000 hours.In March,it incurred overhead costs of $1,150,000 and 5,100 labor hours. 
-What is the overapplied or underapplied overhead for Ad-on International for March,2014?

Quizplus · Accepted Answer

Overhead applied = $950,000 x 5,100 / 5,000 = $979,500Underapplied overhead = $1,150,000 - $979,500 = $181,000

Ad-On International Is an Advertising Company