Everbuilt Company had no jobs in progress at the beginning ofJune and no beginning inventories. It started only two jobs duringJune—Job L and Job W. Job L was completed and sold by the end ofJune and Job W was incomplete at the end of June. The company usesa plantwide predetermined overhead rate based on directlabor-hours. The following additional information is available forthe company as a whole and for Jobs L and W (all data and questionsrelate to the month of June):
Estimated total fixed manufacturing overhead. . . . . . . . . .. . . . . . . . . . . . . . . . $30,000
Estimated variable manufacturing overhead per
direct labor-hour. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.00
Estimated total direct labor hours to be worked. . . . . . . . .. . . . . . . . . . . . . . . . 6,000
Total actual manufacturing overhead costs incurred. . . . . . .. . . . . . . . . . . . . . $47,500
Job L Job W
Direct materials. . . . . . . . . . . . . . . . . . . . . .$39,000 $24,000
Direct labor cost. . . . . . . . . . . . . . . . . . . . . .$62,000 $22,500
Actual direct labor hours worked. . . . . . . . 4,200 1,500
What is the amount of underapplied or overapplied overhead?
please give step by step instructions
