The records of Family Manufacturing show the following information:

Estimated manufacturing overhead	$690,000
Estimated machine hours	46,000
Actual machine hours worked	50,000
Actual costs incurred:
Indirect materials	$170,000
Indirect labor	230,000
Utilities	120,000
Insurance	100,000
Rent	80,000

Assuming that overhead is applied based on an overhead rate calculated using machine hours as the base in the highly automated production environment, what is the amount of over- or underapplied overhead?

Answer rating: 100% (QA)

Answer Estimated manufacturing overhead 690000 Estimated machine hours 46000 Predetermined ... View the full answer