Uses a predetermined overhead rate based

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Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 48,000 actual direct labor-hours and incurred $552,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 46,000 direct labor-hours during the year and incur $506,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

Over applied by $24,000

Unde rapplied by $22,000

Under applied by $24,000

Over applied by $22,000

Reference no: EM13747259

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