contestada

During 2017, cotte manufacturing expected job no. 59 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. cotte applied overhead based on direct labor cost. actual production required an overhead cost of $295000, $570000 in materials used, and $220000 in labor. all of the goods were completed. how much is the amount of over- or underapplied overhead?

Respuesta :

MsTeel

$85,000 under applied.

Calculate the total expected overhead ($300,000+$500,000+$200,000)= $1,000,000

Then calculate the actual overhead ($295,000+$570,000+$220,000)=

$1,085,000

Next, find the difference 1085000-1000000 = $85,000

So, the company under applied overhead by $85,000.