During the year, a firm's direct labor costs were $95,000. The firm applies overhead at the rate of 75 percent of direct labor costs. The firm's actual overhead costs for the year were $72,315.
1. What was the amount of overhead applied?
2. Did the firm have overapplied or underapplied overhead for the year?
3. What amount was overapplied or underapplied?

Question

Quizplus · Accepted Answer

The Answer of During the year, a firm's direct labor costs were $95,000. The firm applies overhead at the rate of 75 percent of direct labor costs. The firm's actual overhead costs for the year were $72,315.
1. What was the amount of overhead applied?
2. Did the firm have overapplied or underapplied overhead for the year?
3. What amount was overapplied or underapplied?

During the Year, a Firm's Direct Labor Costs Were $95,000