Figure 4-5
The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours. The following data is given:
-Refer to Figure 4-5. How much was overhead over/underapplied?

Question

Figure 4-5
The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours. The following data is given: 
-Refer to Figure 4-5. How much was overhead over/underapplied?

Quizplus · Accepted Answer

The correct answer is $42,500. This is determined by comparing the actual overhead costs to the applied overhead costs. If the applied overhead is less than the actual overhead, it is underapplied, and if it is more, it is overapplied.

Figure 4-5 The Brookstone Company Produces 9 Volt Batteries and AAA Batteries