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Urquhart Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $106,000 and 3,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $105,000 and the actual direct labor-hours were 3,600. Instructions: 1.) If rounding is required, then round your answer to the nearest whole dollar. Rounding, if applicable, should not be done until a final answer is reached. Overhead for the year was overapplied (+) or underapplied (-) by how much?
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How do you know if the company you are investing in has ethical executives? And how do you know that those executives will continue to act in an ethical manner when "times get tough"?
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