Estimated data for Lorien Company for year 1 are as follows: Direct materials to be purchased- $35,0
Estimated data for Lorien Company for year 1 are as follows:
Direct materials to be purchased- $35,000
indirect labor- 10,000
wages of janitors in corporate office building 47,000
factory building rent- 60,000
Depreciation on production equipment- 20,000
Administrative office supplies- 25,000
Estimated direct labor hours: 40,000 hours Actual data for Year 1 are as follows:
-Total manufacturing overhead $110,000
-Direct labor hours 35,000 hours
The predetermined manufacturing overhead rate is determined on the basis of direct labor hours What is the amount of over- or under applied overhead for Lorien Company for Year 1?
