Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
The following were the actual results:
Calculate the total amount of underapplied or overapplied manufacturing overhead.
A) $80 000 underapplied
B) $64 000 underapplied
C) $50 000 overapplied
D) $24 000 underapplied

Question

Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year: 
The following were the actual results: 
Calculate the total amount of underapplied or overapplied manufacturing overhead.
A) $80 000 underapplied 
B) $64 000 underapplied 
C) $50 000 overapplied 
D) $24 000 underapplied

Quizplus · Accepted Answer

The Answer of Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year: 
The following were the actual results: 
Calculate the total amount of underapplied or overapplied manufacturing overhead.
A) $80 000 underapplied 
B) $64 000 underapplied 
C) $50 000 overapplied 
D) $24 000 underapplied

Hamilton Pty Ltd Uses a Standard Costing System for Product