Question

brusveen corporation applies manufacturing overhead to jobs on the basis of direct labor hours. Direct labor hours estimated at 15,000 with Manufacturing overhead cost of $300,000. The actual direct labor hours were 14,800 and manufacturing overhead cost was $287,120. What was Brusveen's underapplied or overapplied overhead for last year?

Answer 1

Brusveen's underapplied or overapplied overhead for last year was $12,880.

Step-by-step explanation:

To calculate the underapplied or overapplied overhead, we need to compare the estimated manufacturing overhead cost with the actual manufacturing overhead cost.

Estimated manufacturing overhead cost = $300,000

Actual manufacturing overhead cost = $287,120

Underapplied or Overapplied overhead = Estimated manufacturing overhead cost - Actual manufacturing overhead cost

Underapplied or Overapplied overhead = $300,000 - $287,120 = $12,880

Brusveen's underapplied or overapplied overhead for last year was $12,880.