Dukes Company 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 underapplied or overapplied overhead for the year was:

Question

Dukes Company 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 underapplied or overapplied overhead for the year was:

Quizplus · Accepted Answer

Manufacturing overhead applied = $2 per DLH F1F1F1S1F1F1F10 18,500 DLHs = $37,000
$38,000 - $37,000 = $1,000 underapplied

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