Question

Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Item 5 Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,020 hours and the total estimated manufacturing overhead was $550,500. At the end of the year, actual direct labor-hours for the year were 21,800 hours and the actual manufacturing overhead for the year was $550,500. Overhead at the end of the year was:

Answer 1

under-applied overheads is $1,340

Step-by-step explanation:

Note : I have attached the full question/similar as an image below.

Actual Overheads = $594,960

Applied Overheads = $594,960 / 22,200 x 22,150 = $593,620

Since,

Actual Overheads > Applied Overheads, overheads have been under-applied.

Amount of under-applied overheads is $1,340 ($594,960 - $593,620).