Abc company applies overhead to jobs using direct labor


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ABC Company applies overhead to jobs using direct labor cost as an activity. For the month of June, ABC Company estimated it would incur overhead cost of $25,000 while the actual overhead cost for

June totaled $27,530. For June, ABC Company estimated it would incur direct labor cost of $40,000

while the actual direct labor cost for June totaled $38,000. For the month of June, overhead was:

underapplied by $3,780
underapplied by $2,530
underapplied by $33,270
overapplied by $3,780
overapplied by $2,530
overapplied by $33,270

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Accounting Basics: Abc company applies overhead to jobs using direct labor
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