Homework Answers
Answer:
a. $1353000 Under Applied.
Explanation:
Step 1:
Computation of predetermined overhead rate:
Predetermined overhead rate = Total estimated overhead / Total estimated machine hour
= $11955000 / 161000 = $74.25 i.e. $74
Step 2:
Computation of Applied overhead:
Applied overhead = 84000 machine hours x $74 = $6216000
Step 3:
Under Applied overhead = Actual overhead - Applied overhead
= $7569000 - $6216000
= $1353000 under applied.
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