Question

please explain

Lien Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, 10. the estimated direct labor-hours were 22,060 hours and the total estimated manufacturing overhead was $560,324 At the end of the year, actual direct labor-hours for the year were $2.000 hour and the actual manufacturing overhead for the year was $560,324 Overhead at the end of the year was A) $1524 overapplied B) $1524 underapplied C) $1574 overapplied D) $1574 underapplied

Answer 1

Solution:

The Answer is B) $ 1,524 Under applied.

Estimated Manufacturing Overhead for Actual Hours(A)	$            558,800	(22000*560324)/22060
Actual Manufacturing Overhead for Actual Hours(B)	$            560,324	Given
Over applied /(Under applied)	$              (1,524)

So, Remaining options are Incorrect.