2. Jenny Company uses a job-order costing system and applies manufacturing overhead to jobs using...
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Accounting
2. Jenny Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $300,000 and 75,000 hours, respectively, for the year. At the end of the year, it was determined that the company worked 74,000 direct labor- hours for the year and incurred $302,000 in actual manufacturing overhead costs. Required: Determine the overhead rate Jennie Company used per direct labor-hour during the year. (7 pts) Determine the underapplied or overapplied overhead for the year. Be sure to state if it is underapplied or overapplied. (7 pts)
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