Osborn Manufacturing uses a predetermined overhead rate of $18.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $240,030 of total manufacturing overhead for an estimated activity level of 12,700 direct labor-hours. The company incurred actual total manufacturing overhead costs of $237,000 and 12,200 total direct labor-hours during the period.
Determine the amount of underapplied manufacturing overhead for the period.
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Osborn Manufacturing uses a predetermined overhead rate of $18.90 per direct labor-hour. This predet...
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