Question
Kubal Inc. applies overhead based on machine hours. Kubal reports the following for the year just ended: Budgeted overhead for the year $350,000 Budgeted machine
Kubal Inc. applies overhead based on machine hours. Kubal reports the following for the year just ended:
| Budgeted overhead for the year | $350,000 |
| Budgeted machine hours | 2,000 |
| Actual overhead for the year | $375,000 |
| Actual machine hours | 2,400 |
What is the amount of over- or under-applied overhead for the year?
$Answer
Answerover-appliedunder-applied
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
12th Canadian edition
133098230, 978-0132791564, 132791560, 978-0133098235
