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The following information was gathered for the Wesley Corporation for the most recent year. Manufact

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The following information was gathered for the Wesley Corporation for the most recent year. Manufact

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours.

Estimated direct labor hours    40,000
Actual direct labor hours    51,000
Estimated manufacturing overhead costs    $840,000
Actual manufacturing overhead costs    $985,000

What is the amount of overallocated or underallocated overhead for the year?
A) $145,000 underallocated
B) $86,00 overrallocated
C) $86,000 underallocated
D) $145,000 overallocated

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Managerial Accounting

Edition: 4^th

Author: Braun

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