Multiple Choice
Sawyer Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, the company worked
57,000 actual direct labour hours and incurred $345,000 of actual manufacturing overhead cost. The Company had estimated that it would work 55,000 direct labour hours during the year and incur $330,000 of manufacturing overhead cost. The company's manufacturing overhead cost for the year was:
A) overapplied by $3,000.
B) underapplied by $3,000.
C) overapplied by $15,000.
D) underapplied by $15,000.
Correct Answer:
Verified
Correct Answer:
Verified
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