The Magnanimous Company Uses a Predetermined Overhead Rate of $12

question 199

Multiple Choice

The Magnanimous Company uses a predetermined overhead rate of $12 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $320,000. The overhead variance is

• A)$40,000 underapplied.
• B)$35,560 underapplied.
• C)$36,000 overapplied.
• D)none of the above.

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