Company uses a standard cost system and applies overhead on a per unit basis. Ha

Question

Company uses a standard cost system and applies overhead on a per unit basis. Harris Company estimated that 30,000 units would be produced in 2008 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was: Overhead = $120,000 + $6 per unit During the year, actual overhead cost was $340,000. Actual units produced were 32,000. What is the amount of under or over applied overhead? $20,000 overapplied $20,000 underapplied $28,000 overapplied $28,000 underapplied

Explanation / Answer

its definitely $28,000 overapplied

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