in December, 2016, Sutton estimated overhead costs for 2017 to be $800,000. Sutton applies overhead...
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Accounting
in December, 2016, Sutton estimated overhead costs for 2017 to be $800,000. Sutton applies overhead using direct labor cost. Actual overhead during 2017 was $750,000, and applied overhead during 2017 was $790,000. Which of the following must be CORRECT?
a. Overhead was overapplied by $10,000.
b. Overhead was underapplied by $10,000.
c. Overhead was underapplied by $50,000.
d. Actual Direct Labor cost was less than the estimated Direct Labor cost for the year of 2017.
e. Overhead was overapplied by $50,000.
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