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Crestor Corporation makes musical instruments using the latest available technology. The company applies manufacturing overheads cost to products on the basis of machine-hours. The estimated
Crestor Corporation makes musical instruments using the latest available technology. The company applies manufacturing overheads cost to products on the basis of machine-hours. The estimated manufacturing overhead costs was $900,000 for an estimated activity level of 75,000 machine-hours. During the year, company utilised machine-hours equals 60,000 and manufacturing overhead cost incurred amounts to $850,000. Calculate the underapplied or overapplied overhead. a. $130.000 overapplied b. $130,000 underapplied C. $275,000 underapplied d. $250,000 overapplied
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