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Sandross, Inc. applies overhead based on direct labor cost using a job-order costing system. The company estimated the follow
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Answer #1

Answer -

$ 2,000 underapplied

Explanation -

Estimated manufacturing overhead = $ 42,000

Actual manufacturing overhead = $ 44,000

Underapplied overhead =

Estimated manufacturing overhead - Actual manufacturing overhead

= $ 42,000 - $ 44,000

= $ 2000 underapplied

As the estimated manufacturing overhead is less than estimated manufacturing overhead. So $ 2000 is underapplied overhead.

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