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During November, Ironwood Manufacturing used 10,375 direct labor hours and paid direct labor wages ...

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During November, Ironwood Manufacturing used 10,375 direct labor hours and paid direct labor wages ...

During November, Ironwood Manufacturing used 10,375 direct labor hours and paid direct labor wages of $166,000. The company incurred manufacturing overhead of $368,540 during this same time period. For the entire year, Ironwood estimated total manufacturing overhead would be $4,410,000, direct labor hours would be 126,000, and total direct labor wages would be $1,992,000. Company managers determined that manufacturing overhead would be applied based on direct labor hours. For the month of November, manufacturing overhead was

▸ $1,040 overapplied.

▸ $5,415 overapplied.

▸ $1,040 underapplied.

▸ $5,415 underapplied.

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Managerial Accounting

Edition: 4^th

Author: Davis

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