During the Year,Paul Company Used a Predetermined Overhead Rate of $3.50

During the year,Paul Company used a predetermined overhead rate of $3.50 per direct labour hour,based on an estimate of 22,000 direct labour hours to be worked during the year.Actual overhead cost and activity during the year were:
What was the under- or overapplied overhead for the year?

A) $2,500 overapplied.
B) $2,500 underapplied.
C) $10,500 overapplied.
D) $13,000 underapplieD.
$90,000 - (25,000 @ $3.50) = $2,500 underapplieD.

Correct Answer:

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