Sandross, Inc $\quad$ $\$ 42,000$ Estimated Direct Labor $\quad$ 1,600 Hours At $\$ 15$

question 97

Multiple Choice

Sandross, Inc.applies overhead based on direct labor cost using a job-order costing system.The company estimated the following annual amounts: Estimated manufacturing overhead $\quad$$\$ 42,000$
Estimated direct labor $\quad$ 1,600 hours at $\$ 15$ per hour
Actual amounts for the year were:
Actual manufacturing overhead $\quad$$\$ 44,000$
Actual direct labor $\quad$ 1,550 hours at $\$ 16$ per hour How much is over or underapplied overhead?

• A)$600 underapplied
• B)$2,000 underapplied
• C)$3,313 underapplied
• D)$1,419 underapplied

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