The following cost data relate to the manufacturing activities of Chang Company

Question

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $26 per machine-hour. A total of 20,400 machine-hours was recorded for the year.

Compute the amount of underapplied or overapplied overhead cost for the year.

Underapplied:

Overapplied:

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Explanation / Answer

Total Manufacturing Overhead $ 520,000 Overhead Applied $ 530,400 Over Applied $    10,400

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