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    Underapplied overhead

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    If estimated annual factory overhead is $480,000, estimated annual direct labor hours are 200,000, actual March factory overhead is $41,000, and actual March direct labor hours are 17,000, then overhead is?:
    $800 overapplied.
    $200 overapplied.
    $800 underapplied.
    $200 underapplied.
    $1,000 underapplied.

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    Solution Preview

    Estimated March factory overhead = Actual March direct labor hours * ...

    Solution Summary

    This explains the meaning of underapplied overhead