Manufacturing overhead incurred, Accounting Basics

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Manufacturing overhead incurred

Igor Inc. had a predetermined overhead rate of $2 per direct labor hour. The direct labor hours were estimated to be 25,000. The actual manufacturing overhead incurred was $47,000 and 24,000 actual direct labor hours were worked. How much was overhead over/under applied last year?

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Accounting Basics: Manufacturing overhead incurred

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Accounting Basics: Manufacturing overhead incurred

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