Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: The overapplied or underapplied manufacturing for the year was:
A) $1,000 underapplied
B) $1,000 overapplied
C) $3,000 underapplied
D) $3,000 overapplied

Question

Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were:  The overapplied or underapplied manufacturing for the year was:
A) $1,000 underapplied 
B) $1,000 overapplied 
C) $3,000 underapplied 
D) $3,000 overapplied

Quizplus · Accepted Answer

The Answer of Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were:  The overapplied or underapplied manufacturing for the year was:
A) $1,000 underapplied 
B) $1,000 overapplied 
C) $3,000 underapplied 
D) $3,000 overapplied

Dukes Corporation Used a Predetermined Overhead Rate This Year of $2