Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011: Factory overhead rate is $18 per direct labor hour.
What is the amount of under- or overapplied overhead for Walter Company in 2011?
A) $40,000 underapplied
B) $20,000 underapplied
C) $40,000 overapplied
D) $20,000 overapplied

Question

Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011:  Factory overhead rate is $18 per direct labor hour.
What is the amount of under- or overapplied overhead for Walter Company in 2011?
A) $40,000 underapplied 
B) $20,000 underapplied 
C) $40,000 overapplied 
D) $20,000 overapplied

Quizplus · Accepted Answer

The Answer of Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011:  Factory overhead rate is $18 per direct labor hour.
What is the amount of under- or overapplied overhead for Walter Company in 2011?
A) $40,000 underapplied 
B) $20,000 underapplied 
C) $40,000 overapplied 
D) $20,000 overapplied

Walter Company Uses a Job-Order Costing System to Account for Product