Multiple Choice
Paul Company used a predetermined overhead rate during the year just completed of $3.50 per direct labor-hour, based on an estimate of 22,000 direct labor-hours to be worked during the year. Actual overhead cost and activity during the year were:
The underapplied or overapplied overhead for the year would be:
A) $13,000 underapplied
B) $10,500 overapplied
C) $2,500 overapplied
D) $2,500 underapplied
Correct Answer:

Verified
Correct Answer:
Verified
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