What is amount of under or over-applied overhead

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Reference no: EM13827369

During 2015, Michael Company applied overhead using a job-order costing system at a rate of $15 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $2,250,000. Actual direct labor hours for 20x1 were 140,000, and actual overhead was $2,400,000.

What is the amount of under- or over-applied overhead for the year?

$300,000 under-applied

$20,000 under-applied

$300,000 over-applied

$120,000 over-applied

Reference no: EM13827369

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