Asadi Company Uses a Job Costing System and Allocates Overhead

question 157

Multiple Choice

Asadi Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 20x5 is as follows: Estimated Actual
Manufacturing overhead $166,500 $165,000
Direct labour hours 50,000 60,000
The amount of over- or underapplied overhead for 20x5 was:

• A)$1,500 underapplied
• B)$3,000 underapplied
• C)$1,500 overapplied
• D)$34,800 overapplied

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Definitions:

Human Data-entry Technology

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Optical Mark Reader

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Point-of-sale Terminal

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