Perion Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

Perion Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was:

A) $4,280 overapplied.
B) $9,280 overapplied.
C) $9,280 underapplied.
D) $4,280 underapplied.

Correct Answer:

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