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During the month of May Antonio Company allocated overhead to Job 316 at a rate of $1.20 per direct labor hour with a total of 6500 direct labor hours used on Job 316.
At the end of the month the cost accountant noted actual overhead incurred for Job 316 was $5,000 made up of actual utility costs and indirect labor.
The result of the comparison between allocated overhead and actual would be...
a. Underapplied overhead of $5,000b. Overapplied overhead of $7,800c. Overapplied overhead of $2,800d. Overapplied overhead of $12,800
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