Uses predetermined overhead rate

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The Edge Company uses a predetermined overhead rate of $5 per direct labor hour. In December, actual overhead amounted to $650,000 and actual direct labor hours were 132,000. For the month, overhead was:

a. $50,000 overapplied.

b. $50,000 underapplied.

c. $10,000 overapplied.

d. $10,000 underapplied.

Reference no: EM131219286

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