During 2016 Arb Company Incurred the Following Direct Labor Costs

question 156

Essay

During 2016 Arb Company incurred the following direct labor costs: January $20000 and February $30000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months respectively totaled $19500 and $35700. Actual overhead for the 2 months respectively totaled $25000 and $33500.
Instructions
Determine if overhead is over- or underapplied for each of the two months and the respective amounts.

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Definitions:

Endowments

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Control Processes

Psychological mechanisms that help an individual regulate their thoughts, feelings, and behaviors in pursuit of their goals.

Total Immersion Approach

A method of language teaching where learners are placed in an environment where only the target language is spoken, to encourage rapid learning.

Bilingual Schooling

An educational approach where students are taught curriculum content in two languages, aiming to develop fluency and literacy in both.