Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 2

Assume that actual overhead is $613,000 in a given year and the overhead rate is $10 per unit, 60,000 units were sold, and 59,000 units were produced. For the end of the year, is overhead underapplied or overapplied, and by how much