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Cavy Company estimates that total factory overhead for the following year will be $2,271,400. The company has decided that the basis for applying factory overhead
Cavy Company estimates that total factory overhead for the following year will be $2,271,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 27,700 hours. The actual machine hours for the month of April for all of the jobs were 5,010. If the actual factory overhead totaled $404,247, determine the over- or underapplied amount for the month. Enter the amount as a positive number.
$_________ [underapplied or overapplied]
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