During 2012, Cotte Manufacturing expected Job No. 59 to cost $600,000 of overhead, $1,000,000 of materials, and $400,000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $560,000, $1,100,000 in materials used, and $440,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead? $100,000 overapplied $40,000 underapplied $40,000 overapplied $100,000 underapplied

During 2012, Cotte Manufacturing expected Job No. 59 to cost $600,000 of overhead, $1,000,000 of materials, and $400,000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $560,000, $1,100,000 in materials used, and $440,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?

$100,000 overapplied

 

$40,000 underapplied

 

$40,000 overapplied

 

$100,000 underapplied

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