Question

The Thomlin Company forecasts that total overhead for the current year will be $11,298,000 with 156,000 total machine hours. Year to date, the actual overhead is $7,722,000 and the actual machine hours are 100,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a $522,000 underapplied b. $522,000 overapplied c5783,000 underapplied d. 1783,000 overapplied

Answer 1

1. Predetermined overhead rate = Estimated overhead/Estimated machine hours = 11,298,000/156,000 = 72 per machine hour Applied overhead = 72*100,000 = 7,200,000 Actual overhead = 7,722,000 So,the overhead is underapplied by 522,000 Option A is the answer

As per HOMEWORKLIB RULES I answered your first question