Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour,based on an estimate of 25,000 direct labour hours to be worked during the year.Actual costs and activity during the year were: The underapplied or overapplied overhead last year was:
A) $1,000 underapplied.
B) $1,000 overapplied.
C) $3,000 overapplied.
D) $2,000 underapplied.

Question

Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour,based on an estimate of 25,000 direct labour hours to be worked during the year.Actual costs and activity during the year were:  The underapplied or overapplied overhead last year was:
A) $1,000 underapplied. 
B) $1,000 overapplied. 
C) $3,000 overapplied. 
D) $2,000 underapplied.

Quizplus · Accepted Answer

The Answer of Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour,based on an estimate of 25,000 direct labour hours to be worked during the year.Actual costs and activity during the year were:  The underapplied or overapplied overhead last year was:
A) $1,000 underapplied. 
B) $1,000 overapplied. 
C) $3,000 overapplied. 
D) $2,000 underapplied.

Beaver Company Used a Predetermined Overhead Rate Last Year of $2