During the year the company worked a total of 145,500 machine-hours on all jobs

Question

During the year the company worked a total of 145,500 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,277,670. What is the amount of underapplied or overapplied overhead for the year? The predetermined overhead rate is 8.74. and the total manufacturing cost was $1013. I kept getting under-applied by $4987 but that is not right and I don't know what to do now. I was doing the following: 145,500(8.74)+$1013 to get 1,272,683 which subtracted from $1,277,670 is my $4987. Please help!!

Explanation / Answer

manufacturing cosh should not be added in calculation of overhead cost 1277670-145,500(8.74) = 6000 underapplied

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.