A manufacturing company applies factory overhead based on direct labor hours. At the begnning of...

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Accounting

A manufacturing company applies factory overhead based on direct labor hours. At the begnning of the year, it
estimated that total factory overhead costs would be $353,792 and direct labor hours
44,224. Actual
factory overhead costs incurred were $405,711, and actual direct labor hours were 52,827. What is the
amount of over- or underapplied factory overhead at the end of the year?
a. $16,905 underapplied
b. $68,824 underapplied
c. $16,905 overapplied
d. $422,616 overapplied
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