John Corporation bases its overhead rate on direct labour hours. The expected direct labour hours at the beginning of the year were 21,800 hours, and the total estimated manufacturing overhead was $497,040. Actual direct labour hours for the year were 21,500 hours at the end of the year, and actual manufacturing overhead was $492,040. At the conclusion of the year, the following expenses were incurred: A. $1,840 underapplied B. $6,840 overapplied C. $6,840 underapplied D. $1,840 overapplied

John Corporation bases its overhead rate on direct labour hours. The expected direct labour hours at the beginning of the year were 21,800 hours, and the total estimated manufacturing overhead was $497,040. Actual direct labour hours for the year were 21,500 hours at the end of the year, and actual manufacturing overhead was $492,040. At the conclusion of the year, the following expenses were incurred: A. $1,840 underapplied B. $6,840 overapplied C. $6,840 underapplied D. $1,840 overapplied

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Description: John Corporation bases its overhead rate on direct labour hours. The expected direct labour hours at the beginning ofthe year were 21,800 hours, and the total estimated manufacturing overhead was $497,040. Actual direct labour hoursfor the year were

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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estion Manufacturing overhead was estimated to be OMR 200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 215,000, and actual labor hours were 21,000. Which of the following would be correct? et ered O a. Overhead is overapplied by OMR 15,000. ed out of O b. None of the given answer is correct O c. Overhead is underapplied by OMR 15,000. O d. Overhead is underapplied by OMR 5,000. ion O e. Overhead is overapplied by OMR 5,000.
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