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Austin Company uses a job order cost accounting system. Thecompany's executives estimated that direct labor would be$6,000,000 (600,000 hours at $10/hour) and that factory overheadwould be $3,900,000

Austin Company uses a job order cost accounting system. Thecompany's executives estimated that direct labor would be$6,000,000 (600,000 hours at $10/hour) and that factory overheadwould be $3,900,000 for the current period. At the end of theperiod, the records show that there had been 260,000 hours ofdirect labor and $3,120,000 of actual overhead costs. Using directlabor hours as the allocation base, calculate the under- oroverapplied overhead for the period. (Round Overhead rateto 2 decimal places.)

rev: 10_18_2013_QC_37729

  $1,430,000 underapplied.
  $2,210,000 underapplied.
  $4,420,000 underapplied.
  $4,420,000 overapplied.
  $600,000 underapplied.

May 24 2021 View more View Less

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