Overhead on the basis of direct labor-hours

Reference no: EM131812082

Ruel Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.

The overhead for the year was:

A. $3,090 overapplied
B. $4,840 underapplied
C. $4,840 overapplied
D. $3,090 underapplied

Reference no: EM131812082

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