Dexter Corporation uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs). Information on Dexter Corporation's manufacturing overhead costs for last period is given below: Given these data, the underapplied or overapplied overhead cost for the period would be:
A)$10,000 overapplied
B)$2,000 overapplied
C)$10,000 underapplied
D)$8,000 underapplied

Question

Dexter Corporation uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs). Information on Dexter Corporation's manufacturing overhead costs for last period is given below:  Given these data, the underapplied or overapplied overhead cost for the period would be:
A)$10,000 overapplied 
B)$2,000 overapplied 
C)$10,000 underapplied 
D)$8,000 underapplied

Quizplus · Accepted Answer

The Answer of Dexter Corporation uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs). Information on Dexter Corporation's manufacturing overhead costs for last period is given below:  Given these data, the underapplied or overapplied overhead cost for the period would be:
A)$10,000 overapplied 
B)$2,000 overapplied 
C)$10,000 underapplied 
D)$8,000 underapplied

Dexter Corporation Uses a Standard Cost System and Applies Manufacturing