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Raw materials purchases $ 75,000 Direct labor cost $100,000 Manufacturing overhead cost incurred $ 68,000 Indirect materials
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year,
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Answer #1

1) Question is not complete beginning raw material and ending raw material is not given

2) Predetermine overhead rate = 243600/8600 = 28.33 per hour

Overhead applied = 5900*28.33 = 167147

Actual overhead = 244600

Under applied overhead = 244600-167147 = 77453

So answer is b) $77453 under applied

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