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Question - At the beginning of the year, Green Co. estimated the following:
Overhead $564,000
Direct labor hours 120,000 hours
Green applies overhead on the basis of direct labor hours.
By the end of the year, Green showed for the following actual amounts:
Overhead $510,000
Direct labor hours 108,000 hours
At the end of the year, what is the amount of the over- or under-applied overhead?
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