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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This explains the meaning of underapplied overhead
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Estimated March factory overhead = Actual March direct labor hours * ...
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