What is the amount of fixed overhead over-applied


In Week 2, the budgeted labourhours for normal activity are 10,000 hours. The budgeted fixed costis £15,000. The fixed overhead cost rate is calculated on thebasis of budgeted cost and budgeted normal activity. At the end ofthe week it is found that 11,000 hours were worked in practice.What is the amount of fixed overhead over-applied or under-appliedto jobs in Week 1?

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Accounting Basics: What is the amount of fixed overhead over-applied
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