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Question 9 5 pts Carter Corporation applies manufacturing overhead on the basis

ID: 2331336 • Letter: Q

Question

Question 9 5 pts Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 6,000. The company's predetermined overhead rate for the year was $25.70 per machine-hour. The overhead for the year was: $9,200 overapplied $3,952 underapplied $3,200 overapplied $5,198 underapplied @ None of the above

Explanation / Answer

9200 overapplied .

Actual manufacturing overhead = machine hour * rate per hour

= 6000 * 25.70 = 154200.

Amounted manufacturing overhead = 145000.

Show 154200- 145000 = 9200 overapplied

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