River Girl Fly Fishing Shop applies overhead at a rate of $5 per direct labor...

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Accounting

River Girl Fly Fishing Shop applies overhead at a rate of $5 per direct labor hour. At the end of the month, the company had accumulated 7,000 direct labor hours and incurred $38,000 in manufacturing overhead. Manufacturing overhead was

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$3,000 underapplied.

$3,000 overapplied.

$600 underapplied.

$600 overapplied.

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