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The Overhead Budget, Based on a Budgeted Volume of 100

Question 52

Multiple Choice

The overhead budget, based on a budgeted volume of 100 000 direct labour hours, was $255 000. Actual overhead costs amounted to $270 000 and actual direct labour hours were 105 000. By how much was overhead under or overapplied?


A) $2250 overapplied
B) $15 000 overapplied
C) $2250 underapplied
D) $15 000 underapplied

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