10 May WHAT IS THE AMOUNT OF UNDER- OR OVER-APPLIED OVERHEAD FOR THE YEAR?
During 2015 Wendy Company applied overhead using a job-order costing system at a rate of $16 per direct labor hour. Estimated direct labor hours for the year were 110 000 and estimated overhead for the year was $1 760 000. Actual direct labor hours for 2015 were 140 000 and actual overhead was $2 120 000. What is the amount of under- or over-applied overhead for the year?
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