Can someone please help explain this??? A company expected its annual overhead costs to be $767600...

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Can someone please help explain this??? A company expected its annual overhead costs to be $767600 and machine hours to equal 101000 hours. Actual overhead was $7460

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Answer 1

Answer #1

OPTION: $8800 underapplied

EXPLANATION:

Predetermined overhead rate = $767600/101000 = $7.6 per hour.

therefore, absorbed overheads = $7.6 x 97000 = $737200

actual overheads = $746000

therefore,

Overheads underapplied = actual overheads - absorbed overheads

= $746000 - $737200
= -$8800

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Answer 2

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A company expected its annual overhead costs to be $793100 and machine hours to equal 103000...

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Can someone please help explain this??? A company expected its annual overhead costs to be $767600...

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