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Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, ...

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Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, ...

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were:

Actual manufacturing overhead cost incurred	$84,000
Actual direct labor-hours worked	27,000

The overapplied or underapplied manufacturing overhead for the year was:

▸ $3,000 underapplied

▸ $3,000 overapplied

▸ $12,000 underapplied

▸ $12,000 overapplied

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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