Corporation manufacturing overhead cost for the year

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Reference no: EM131812013

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 46,000 actual direct labor-hours and incurred $880,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 44,000 direct labor-hours during the year and incur $836,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

  • overapplied by $6,000
  • overapplied by $38,000
  • underapplied by $6,000
  • underapplied by $38,000

Reference no: EM131812013

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