The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours. The following data is given:
Actual Overhead $325,000
Estimated Overhead $350,000
Estimated Activity:
9 volt battery 100,000 direct labor hours
AAA battery 400,000 direct labor hours
Actual Activity:
9 volt battery 125,000 direct labor hours
AAA battery 400,000 direct labor hours
Units Produced:
9 volt battery 500,000
AAA battery 250,000
How much was overhead over/underapplied?
Answers: 3
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