Woodman Company applies factory overhead on the basis of direct labor hours. Budget and actual data for direct labor and overhead for the year are as follows: Budget Actual Direct labor hours 30,000 32,000 Factory overhead costs $90,000 $88,000 The required journal entry to record applied overhead costs for the year is:
A. underapplied by $2,000.
B. overapplied by $2,000.
C. underapplied by $4,000.
D. overapplied by $8,000.
Answers: 1
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