Justine Company budgeted overhead costs at 180,000 for the current period. In addition, they budgeted costs for factory rent at 215,000, costs for depreciation on office equipment at 12,000, costs for office rent at 92,000, and costs for depreciation of factory equipment at 38,000. All these costs were based on the estimated machine hours of 80,000. Actual factory overhead for the period amounted to 387,875 and machine hours used totaled 74,000.

What was the over or underapplied factory overhead for the period.

a. 12,650 overapplied

b. 12,650 underapplied

c. 108,850 overapplied

d. 108,850 underapplied

Compute the over-under-applied factory overhead for the period.

Journalize he over-under-applied factory overhead.

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