Hayden allocates (applies) overhead based on machine hours. Selected data for the most recent year follow.
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Question:
Hayden allocates (applies) overhead based on machine hours. Selected data for the most recent year follow.
Estimated manufacturing overhead cost$300,000
Actual manufacturing overhead cost$290,000
Estimated machine hours20,000
Actual machine hours22,000
The estimates were made as of the beginning of the year, while the actual results were for the entire year.
The manufacturing overhead for the year would have been
A.) $10,000 underallocated (underapplied).
B.)$10,000 overallocated (overapplied)
C.)$40,000 overallocated (overapplied).
D.) $40,000 underallocated (underapplied)
E.) More information is needed in order to answer the question
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