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11 July, 03:12

Acer Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.

Estimated manufacturing overhead ... $224,550

Estimated machine-hours ... 4,500

Actual manufacturing overhead ... $224,000

Actual machine-hours ... 4,440

The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.

The overhead for the year was:

a. $2,994 underapplied b. $2,444 overapplied c. $2,444 underapplied d. $2,994 overapplied

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Answers (2)
  1. 11 July, 04:49
    0
    A. Estimated manufacturing overhead ... $224,550
  2. 11 July, 06:59
    0
    C. $2,444 under applied Estimated manufacturing overhead = $224,550 Estimated machine hours etc
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