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Question - SixthZ had the following information for November:
Estimated total manufacturing overhead cost for year $375,000
Estimated total direct labor hours for the year (@ $25/hr) 3,000 direct labor hours
Actual manufacturing overhead for November $70,000
Actual direct labor cost for November $12,000
SixthZ uses direct labor cost to apply its overhead. By what amount was the manufacturing overhead over- or under-applied for November?
a. $58,000 underapplied
b. $58,000 overapplied
c. $10,000 underapplied
d. $10,000 overapplied
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