Use the following information to answer Exercises below:
Automated Productions Co. projected the following overhead costs and cost drivers for the coming year:
The company contracted for 2 jobs, both of which were started and completed during the year. Production reported the following data in relation to these jobs:

-Assume that actual overhead and budgeted overhead were the same for this year, and that Automated Productions had no other jobs than these two.
What would have been the amount of under- or over-applied overhead if Automated Productions had used a company-wide rate based on direct labor hours? (Round per-cost-driver costs in intermediate calculations to 2 decimal places.)

Question

Use the following information to answer Exercises below: 
Automated Productions Co. projected the following overhead costs and cost drivers for the coming year:
  The company contracted for 2 jobs, both of which were started and completed during the year. Production reported the following data in relation to these jobs:
 
-Assume that actual overhead and budgeted overhead were the same for this year, and that Automated Productions had no other jobs than these two. 
What would have been the amount of under- or over-applied overhead if Automated Productions had used a company-wide rate based on direct labor hours? (Round per-cost-driver costs in intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

The Answer of Use the following information to answer Exercises below: 
Automated Productions Co. projected the following overhead costs and cost drivers for the coming year:
  The company contracted for 2 jobs, both of which were started and completed during the year. Production reported the following data in relation to these jobs:
 
-Assume that actual overhead and budgeted overhead were the same for this year, and that Automated Productions had no other jobs than these two. 
What would have been the amount of under- or over-applied overhead if Automated Productions had used a company-wide rate based on direct labor hours? (Round per-cost-driver costs in intermediate calculations to 2 decimal places.)

Use the Following Information to Answer Exercises Below