Shivers Ice Cream Company estimates its factory overhead costs to be $35,000 and machine hours to be 5,000 for the year.
If the actual hours worked on Jobs 333 and Jobs 334 total 4,980 and actual factory overhead costs are $34,700, what is the amount of either over- or underapplied factory overhead?
a) overapplied $160
b) underapplied $300
c) overapplied $300
d) underapplied $160
Answers: 3
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