Elevated Expectations Company projected the following overhead costs and cost drivers for past year (assume...
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Accounting
Elevated Expectations Company projected the following overhead costs and cost drivers for past year (assume that actual overhead and budgeted overhead were the same):
| Overhead Item | Expected Costs | Cost Driver | Expected Quantity |
| Setup costs | $12,150 | Number of setups | 50 |
| Ordering costs | 4,050 | Number of orders | 30 |
| Maintenance | 17,400 | Machine-hours | 600 |
| Power | 3,000 | Kilowatt-hours | 600 |
|
|
| Direct Labor Hours | 500 |
Elevated Expectations contracted for 2 jobs, both of which were completed during the year. Production managers reported the following data in relation to these jobs:
|
| Job 1 | Job 2 |
| Direct materials | $19,000 | $14,000 |
| Direct labor | $14,000 | $7,000 |
| Direct labor-hours | 280 | 120 |
| Number of setups | 15 | 14 |
| Number of orders | 17 | 8 |
| Machine-hours | 200 | 120 |
| Kilowatt-hours | 300 | 150 |
NOTE: Round per-cost-driver costs in intermediate calculations to two decimal places.
What is the amount of under- or over-applied overhead for the year?
Select one or more:
a. Over-Applied $14,618
b. Under-Applied $14,648
c. Under-Applied $21,882
d. Over-Applied $21,682
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