What was the overapplied-underapplied overhead period, Accounting Basics

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What was the overapplied-underapplied overhead period

The Johns Company budgeted overhead at $125,000 for the period for Department A based on a budgeted volume of 50,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a balance of $126,000. The actual (and allowed) direct labor hours were 52,000. What was the overapplied (underapplied) overhead for the period?

A. $(4,000)

B. $4,000

C. $(6,500)

D. $6,500

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Accounting Basics: What was the overapplied-underapplied overhead period

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Accounting Basics: What was the overapplied-underapplied overhead period

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Accounting Basics: What was the overapplied-underapplied overhead period

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