Beaver Company used a predetermined overhead rate last year of $2 per direct labor-hour,based on an estimate of 25,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: $\begin{array}{llcc}
\text { Actual manufacturing overhead cost incurred } &\$47,000 \
\text {Actual direct labor-hours worked } &24,000
\end{array}$
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 labor-hour,based on an estimate of 25,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: $\begin{array}{llcc}
  \text {  Actual manufacturing overhead cost incurred } &\$47,000  \
\text {Actual direct labor-hours worked  } &24,000
\end{array}$
 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 labor-hour,based on an estimate of 25,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: $\begin{array}{llcc}
  \text {  Actual manufacturing overhead cost incurred } &\$47,000  \
\text {Actual direct labor-hours worked  } &24,000
\end{array}$
 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