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DeShannon Company applies overhead to production based on direct labour hours. Data for the most current year are as follows:
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Answer

· Correct Answer = Option ‘B’ $ 25,352

A

Actual DLHs

587191

B = A x $722246 / 586192

Applied Overhead

$723,477

C

Actual Overhead

$698,125

Applied Overheads are MORE than actual overhead =

Over-Applied

D = B - C

Over-applied Overheads

$25,352

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