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Hayday Enterprises applies manufacturing overhead on the basis of machine-hours. At the beginning of 2019, the cost accountant estimated the following cost information for the
Hayday Enterprises applies manufacturing overhead on the basis of machine-hours. At the beginning of 2019, the cost accountant estimated the following cost information for the year:
Total DM Costs | $440,000 |
Total DL Costs | $890,000 |
Total MOH Costs | $794,000 |
Total Machine Hours | 2,000 |
Total DL Hours | 90,000 |
At the end of 2019, Hayday Enterprises' cost accountant noted that the company used 2,500 machine hours and actual MOH was $877,000. Was manufacturing overhead under-applied or over-applied and by how much?
Provide over-application as a positive number, and under-application as a negative.
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