I need help and explanation for these two scenarios - the first one deals with overhead cost and question two is on the salary of a production supervisor and what that is properly classifed as See Below
1. 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