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Stardust Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing...

Stardust Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, the company worked 57 000 actual direct labour hours and incurred R345 000 of actual manufacturing overhead cost. The company had estimated that it would work 55 000 direct labour hours during the year and incur R330 000 of manufacturing overhead cost. The company's manufacturing overhead cost for the year was: (2

) a. overapplied by R15 000.

b. underapplied by R15 000.

c. overapplied by R3 000.

d. underapplied by R3 000

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jeff jeffy answered 2 years ago
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