Job order cost accounting system

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Reference no: EM13789514

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $6,000,000 (600,000 hours at $10/hour) and that factory overhead would be $3,900,000 for the current period. At the end of the period, the records show that there had been 260,000 hours of direct labor and $3,120,000 of actual overhead costs. Using direct labor hours as the allocation base, calculate the under- or overapplied overhead for the period. (Round Overhead rate to 2 decimal places.)

rev: 10_18_2013_QC_37729

$1,430,000 underapplied.

$2,210,000 underapplied.

$4,420,000 underapplied.

$4,420,000 overapplied.

$600,000 underapplied.

Reference no: EM13789514

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