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Rivertown Products Applied Overhead to Jobs at a Rate of $10.00

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Rivertown Products applied overhead to jobs at a rate of $10.00 per direct labor hour.If the budgeted manufacturing overhead was $660,000 and the actual manufacturing overhead incurred was $630,000, how much under or over applied overhead did Rivertown have?


Definitions:

Continuous Production

A manufacturing process where materials are produced without interruption around the clock.

Like Units

A term used in manufacturing or project management to describe items or resources that are comparable in function or use, often for the purpose of standardization or simplification.

Work in Process Inventory

Items that are partially completed in the manufacturing process but not yet ready for sale, recorded as current assets on a company's balance sheet.

Finished Goods Inventory

Completed products that are ready to be sold but have not yet been sold to customers.

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