Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Walker Company applies manufacturing overhead based on direct labor hours. Infor

ID: 2502482 • Letter: W

Question

Walker Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the years as follows:

Actual manufacturing overhead

$163,800

Estimated manufacturing overhead

$158,600

Direct labor incurred

2,500 hours @ $22 = $55,000

Direct labor estimated

2,600 hours @ $21 = $54,600


How much is over or underapplied overhead at year end?

Actual manufacturing overhead

$163,800

Estimated manufacturing overhead

$158,600

Direct labor incurred

2,500 hours @ $22 = $55,000

Direct labor estimated

2,600 hours @ $21 = $54,600

Explanation / Answer

Walker Company applies manufacturing overhead based on direct labor hours. Infor