Harrell Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at $400,000 and its direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year was $350,000 and the actual direct labor-hours incurred on jobs during the year was 90,000 hours. The manufacturing overhead for the year would be:
A) $10,000 underapplied
B) $10,000 overapplied
C) $50,000 underapplied
D) $50,000 overapplied

Question

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The Answer of Harrell Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at $400,000 and its direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year was $350,000 and the actual direct labor-hours incurred on jobs during the year was 90,000 hours. The manufacturing overhead for the year would be:
A) $10,000 underapplied
B) $10,000 overapplied
C) $50,000 underapplied
D) $50,000 overapplied

Harrell Company Uses a Predetermined Overhead Rate Based on Direct