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Budgeted overhead for the Henderson Company at normal capacity (the denominator level of activity) of 30,000 direct labor hours is $6.00 per hour for variable manufacturing overhead and $4.00 per hour for fixed manufacturing overhead. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. What is the amount of total under or overapplied overhead?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9982993

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