Homework Answers
| C. $995,000 underapplied | ||
| Estimated manufacturing Overhead | $11,562,000 | |
| Estimated machine hours | 157,000 | |
| Predetermined overhead rate ($11,562,000/157,000) | $74 | |
| Overhead applied = | Predetermined overhead rate × actual machine hours | |
| 89,000 x $74 | ||
| $6,586,000 | ||
| Underapplied | $995,000 | |
| ($7,581,000 - $6,586,000) | ||
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