Rist Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? 

$15,000 overapplied 

$15,000 underapplied 

$2,250 overapplied 

$2,250 underapplied

Answer rating: 100% (QA)

Determination of Predetermined Overhead Rate Particualrs Total estimated overhead Esti... View the full answer