During March 2017, Alpha Corporation recorded $16,500 of costs related to factory overhead. Alpha’s overhead application rate is based on direct labor hours
During March 2017, Alpha Corporation recorded $16,500 of costs related to factory overhead. Alpha’s
overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $15,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 10,200 hours were actually worked. Use this information to determine (round & enter any final dollar answers to the nearest whole dollar):
1. the amount of factory overhead that was applied in March
2. the amount of factory overhead that was over or under applies
3. was the factory overhead was over applied or under applied