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Corporate support functions such as IT and Accounting are accounted for in what type of responsibility center?
cost center
investment center
profit center
revenue center
A company uses direct labor hours as its allocation base and has computed a predetermined overhead rate of $12.50 per direct labor hour.
Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000 hours.
Which of the following statements is correct?
Overhead is over applied by $12,500.
Overhead is under applied by $25,000.
Overhead is over applied by $25,000.
Overhead is under applied by $12,500.
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