Elevated Expectations Company projected the following overhead costs and cost drivers for past year (assume...
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Accounting
Elevated Expectations Company projected the following overhead costs and cost drivers for past year (assume that actual overhead and budgeted overhead were the same):
Overhead Item
Expected Costs
Cost Driver
Expected Quantity
Setup costs
$12,150
Number of setups
50
Ordering costs
4,050
Number of orders
30
Maintenance
17,400
Machine-hours
600
Power
3,000
Kilowatt-hours
600
Direct Labor Hours
500
Elevated Expectations contracted for 2 jobs, both of which were completed during the year. Production managers reported the following data in relation to these jobs:
Job 1
Job 2
Direct materials
$19,000
$14,000
Direct labor
$14,000
$7,000
Direct labor-hours
280
120
Number of setups
15
14
Number of orders
17
8
Machine-hours
200
120
Kilowatt-hours
300
150
NOTE: Round per-cost-driver costs in intermediate calculations to two decimal places.
What is the amount of under- or over-applied overhead for the year?
Select one or more:
a. Over-Applied $14,618
b. Under-Applied $14,648
c. Under-Applied $21,882
d. Over-Applied $21,682
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