Walker Company applies manufacturing overhead based on direct labor hours. Infor
ID: 2502482 • Letter: W
Question
Walker Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the years as follows:
Actual manufacturing overhead
$163,800
Estimated manufacturing overhead
$158,600
Direct labor incurred
2,500 hours @ $22 = $55,000
Direct labor estimated
2,600 hours @ $21 = $54,600
How much is over or underapplied overhead at year end?
Actual manufacturing overhead
$163,800
Estimated manufacturing overhead
$158,600
Direct labor incurred
2,500 hours @ $22 = $55,000
Direct labor estimated
2,600 hours @ $21 = $54,600
Explanation / Answer
Walker Company applies manufacturing overhead based on direct labor hours. Infor
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