Beaver Company used a predetermined overhead rate
22. Beaver Company used a predetermined overhead rate last year of $2 per direct labor hour, based on an estimate of 25,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred
Actual direct labor hours worked
The under- or overapplied overhead last year was:
A) $1,000 underapplied.
B) $1,000 overapplied.
C) $3,000 overapplied.
D) $2,000 underapplied.
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