In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000 and operating expenses
1 answer:
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Answer:
correct option is c.$1,300 under applied
Explanation:
given data
annual factory overhead = $546,000
annual direct labor hours = 210,000
March factory overhead = $48,100
March direct labor hours = 18,000
solution
we get here Predetermined overhead rate that is express as
Predetermined overhead rate = Estimated overhead ÷ Estimated labor hours ......................1
put here value
Predetermined overhead rate =
Predetermined overhead rate = $2.6 per labor hour
and
overhead applied is
overhead applied = Actual labor hours in march × Predetermined overhead rate ................2
overhead applied = 18000 × $2.6
overhead applied = $46,800
so we get Under or over applied overhead as
Under or over applied overhead = actual overhead - applied overhead ................3
put here value we get
Under or over applied overhead = $48100 - $46800
overhead = $1,300 under applied
so correct option is c.$1,300 under applied