Hayday Enterprises applies manufacturing overhead on the basis of machine-hours. At the beginning of 2019, the cost
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Question:
Hayday Enterprises applies manufacturing overhead on the basis of machine-hours. At the beginning of 2019, the cost accountant estimated the following cost information for the year:
Total DM Costs $440,000
Total DL Costs $890,000
Total MOH Costs $796,000
Total Machine Hours 2,000
Total DL Hours 90,000
At the end of 2019, Hayday Enterprises' cost accountant noted that the company used 2,500 machine hours and actual MOH was $884,000.
Required
Was manufacturing overhead under-applied or over-applied and by how much?
Provide over-application as a positive number, and under-application as a negative.
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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