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Business, 20.09.2019 19:10 sophiagardens227

Nil co. uses a predetermine overhead rate based on direct labor cost to apply manufacturing overhead to jobs. for the year ended december 31, nil's estimated manufacturing overhead was $600,000, based on an estimated volume of 50,000 direct labor hours, at a direct labor rate of $6.00 per hour. actual manufacturing overhead amounted to $620,000 with actual direct labor cost of $325,000 & 60,000 in actual direct labor hours. for the year, manufacturing overhead was: a) underapplied by $20,000.b) underapplied by $22,000.c) overapplied by $30,000.d) underapplied by $30,000.

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