Motorsports, Inc

question 173

Multiple Choice

Motorsports, Inc. had a predetermined overhead rate of $2 per direct labor hour. The direct labor hours were estimated to be 25,000. The actual manufacturing overhead incurred was $47,000 and 24,000 actual direct labor hours were worked. How much was overhead over/under applied last year?

• A)$1,000 underapplied
• B)$2,000 underapplied
• C)$1,000 overapplied
• D)$3,000 overapplied

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Definitions:

Feasible

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