Bakker Corporation Applies Manufacturing Overhead on the Basis of Direct

question 97

Multiple Choice

Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.
-The overhead for the year was:

• A)$3,090 overapplied
• B)$4,840 underapplied
• C)$4,840 overapplied
• D)$3,090 underapplied

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