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Keystone Company applies overhead on the basis of machine hours, and reported the following data. Estimated annual overhead cost $2,250,000 Actual annual overhead cost $2,227,500
Keystone Company applies overhead on the basis of machine hours, and reported the following data.
Estimated annual overhead cost | $2,250,000 |
Actual annual overhead cost | $2,227,500 |
Estimated machine hours | 300,000 |
Actual machine hours | 295,000 |
Compute the amount of overhead under-applied or over-applied for the period
Group of answer choices
$15,000 under-applied
$22,500 under-applied
$22,500 over-applied
$15,000 over-applied
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