Under applied and over applied overhead

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Reference no: EM13987772

Under applied and Over applied Overhead [LO2-7]

Osborn Manufacturing uses a predetermined overhead rate of $19.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $252,830 of total manufacturing overhead for an estimated activity level of 13,100 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $249,000 and 12,600 total direct labor-hours during the period.

Required:

1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.

Reference no: EM13987772

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