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The accountant for Champion Brake, Inc. applies overhead based on machine hours. The budgeted overhead and machine hours for the year are $260,000 and 16,000, respectively. The actual overhead and machine hours incurred were $275,000 and 20,000. The cost of goods sold and inventory data compiled for the year is as follows:
What is the amount of over/underapplied overhead for the year? A. $15,000 B. $50,000 C. $65,000 D. $67,000 |
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