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    Overhead underapplied or overapplied

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    The company I work for uses direct labor hours as the base to allocate manufacturing overhead. Fox made the following estimates for the coming year: manufacturing overhead cost, $60,000; direct labor hours: 6,000.
    If the actual result for the year are: manufacturing overhead cost, $65,000; direct labor hours: 7,000,

    Will overhead be underapplied or overapplied, and by how much?

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    https://brainmass.com/business/accounting/overhead-underapplied-overapplied-67586

    Solution Preview

    We first find the predetermined overhead rate. The predetermined ...

    Solution Summary

    The solution explains how to calculate the applied overhead and whether it is under or over applied.

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