Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
a. overapplied by $15,000
b. underapplied by $15,000
c. overapplied by $3,000
d. underapplied by $3,000
Answers: 2
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Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to a...
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