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Boston, Inc. applies manufacturing overhead at the rate of $30 per machine hour. Budgeted machine hours for the current period were anticipated to be
Boston, Inc. applies manufacturing overhead at the rate of $30 per machine hour. Budgeted machine hours for the current period were anticipated to be 190,000; however, a lengthy strike resulted in actual machine hours being worked of only 145,000. Budgeted and actual manufacturing overhead figures for the year were $5,700,000 and $4,775,000, respectively. On the basis of this information, the company's year-end overhead was Multiple Choice overapplied by $425,000 underapplied by $425,000 overapplied by $1,900,000, underapplied by $1,900,000. underapplied by $1,450,000.
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