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bernie2981 bernie2981
wrote...
Posts: 3810
8 years ago
Before the year began, Milkway Manufacturing estimated that manufacturing overhead for the year would be $175,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following:

Actual manufacturing overhead cost   $182,000
Actual direct labor hours    20,000

If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been

A) $42,000 underallocated.
B) $7,000 overallocated.
C) $42,000 overallocated.
D) $7,000 underallocated.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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wrote...
8 years ago
A
bernie2981 Author
wrote...
8 years ago
Answers my question perfectly.
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