Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lilahs toy company (ltc) manufactures childrens to

Lilahs Toy Company (LTC) manufactures childrens toys. LTC estimates that its manufacturing overhead costs for...

80.2K

Verified Solution

Question

Accounting

Lilahs Toy Company (LTC) manufactures childrens toys. LTC estimates that its manufacturing overhead costs for 2013 will be $2,500,000 (variable overhead of $1,600,000 and fixed overhead of $900,000). LTC applies manufacturing overhead to inventory using direct labor hours as its base. LTC estimates its 2013 direct labor hours to be 10,000 hours. The actual 2013 manufacturing overhead costs were $2,900,000 (variable overhead of $1,900,000 and fixed overhead of $1,000,000) and actual direct labor hours were 12,000. What is the over or under applied overhead in 2013? a. Under applied overhead of $400,000. b. Over applied overhead of $20,000. c. Under applied overhead of $300,000. d. Under applied overhead of $100,000 e. Over applied overhead of $100,000. Please if anyone can help me , show me step by stop hownto calculate that ?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students