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Scotch Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $400,000 and direct labor hours would be 40,000. The actual figures for the year were $430,000 for manufacturing overhead and 42,000 direct labor hours. Please evaluate the over or under applied overhead amount and variance. Please explain the implications of your answer to Management of your results.

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HR Management, Management Studies

Category:- HR Management
Reference No.:- M9730711

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