Question

Lakeside Company estimated manufacturing overhead costs for 2012 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for 2012 totaled 195,000. The manufacturing overhead account contains debit entries totaling $391,500. The manufacturing overhead for 2012 was:

A) $31,500 underallocated.

B) $31,500 overallocated.

C) $18,000 underallocated.

D) $18,000 overallocated.

Answer

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