Khat Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

Question

Khat Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

Quizplus · Accepted Answer

The Answer of Khat Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

Khat Incorporated Makes a Single Product--A Cooling Coil Used in Commercial