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Home Q & A Board Other Fields Homework Help Business Accounting
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bernie2981 bernie2981
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8 years ago
Beta Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked.

By how much was manufacturing overhead overallocated or underallocated for the year?
A) $42,000 overallocated
B) $18,000 overallocated
C) $18,000 underallocated
D) $42,000 underallocated
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
Answers my question perfectly.
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#3
3 years ago
Thank you
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