The Following Information Was Taken from the Cost Records of the Krameer

question 90

Multiple Choice

The following information was taken from the cost records of the Krameer Company: $\begin{array}{lr}\text { Estimated overhead } & \$ 180,000 \\\text { Actual overhead } & \$ 178,000 \\\text { Estimated direct labor hours } & 24,000 \\\text { Actual direct labor hours } & 25,000 \\\end{array}$

If overhead is applied based on direct labor hours,the company's overapplied or underapplied overhead was

• A) $2,000 overapplied.
• B) $2,000 underapplied.
• C) $9,500 overapplied.
• D) $9,500 underapplied.

---

Definitions:

PP

Commonly used as an abbreviation for "pages" or "per pro" (per procurationem, meaning to sign on behalf of another person).

Abbreviation

An abbreviated form of a term or expression, used to simplify communication.

Hidden

Something that is concealed or not easily seen or found.

Abbreviation

A condensed version of a word or phrase.