Carlo Company Uses a Predetermined Overhead Rate Based on Direct

question 27

Multiple Choice

Carlo Company uses a predetermined overhead rate based on direct labour hours to appl? manufacturing overhead to jobs. The company estimated manufacturing overhead at
$255,000 for the year and direct labour-hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totalled $270,000. Actual direct labour hours were 105,000. What was the overapplied or underapplied overhead for the year?

• A)$2,250 underapplied.
• B)$15,000 underapplied.
• C)$2,250 overapplied.
• D)$15,000 overapplied.

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