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23 March, 07:15

A manufacturing company applies factory overhead based on direct labor hours. at the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 45,000. actual factory overhead costs incurred were $377,200, and actual direct labor hours were 47,000. what is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

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  1. 23 March, 10:48
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    The amount of underapplied manufacturing overhead at the end of the year is $1200.

    Explanation:

    Total estimated $360,000/est

    direct labour hours 45000 = $8x (Actual Dl hours) 47000

    = $376,000

    Actual Overhead worked = $377,200 - $376,000

    = $1200 underapplied

    Therefore, The amount of underapplied manufacturing overhead at the end of the year is $1200.
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