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Question
The following calendar year information about the Tahoma Corporation is available on December 31:
| Advertising expense | $ 28,800 |
| Depreciation of factory equipment | 42,320 |
| Depreciation of office equipment.. | 10,800 |
| Direct labor | 142,600 |
| Factory utilities... | 35,650 |
| Interest expense... | 6,650 |
| Inventories, January 1: | |
| Raw materials | 3,450 |
| Goods in process | 17,250 |
| Finished goods... | 35,600 |
| Inventories, December 31: | |
| Raw materials.. | 2,300 |
| Goods in process.. | 20,700 |
| Finished goods | 31,050 |
| Raw materials purchases | 132,450 |
| Rent on factory building | 41,400 |
| Indirect labor.. | 51,750 |
| Sales commissions.. | 16,500 |
The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.
Answer
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Related questions
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