Comparison between allocated overhead and actual

Reference no: EM13128370

During the month of May Antonio Company allocated overhead to Job 316 at a rate of $1.20 per direct labor hour with a total of 6500 direct labor hours used on Job 316.

At the end of the month the cost accountant noted actual overhead incurred for Job 316 was $5,000 made up of actual utility costs and indirect labor.

The result of the comparison between allocated overhead and actual would be...

a. Underapplied overhead of $5,000
b. Overapplied overhead of $7,800
c. Overapplied overhead of $2,800
d. Overapplied overhead of $12,800

Reference no: EM13128370

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